What would happen to Bitcoin if the U.S. debt limit breaks (opinion)

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Von Krypto News Österreich

Beachten Sie, dass die kleine blaue Linie bei Google Trends für „Bitcoin“ die Obergrenze erreicht, wenn die USA mit ihren Schulden in Verzug geraten. BTC könnte zunächst leiden, wenn die Märkte risikoscheu werden, könnte aber in einer weiteren globalen Finanzkrise leicht glänzen. Die Republikaner im Repräsentantenhaus erzielten am Memorial-Day-Wochenende eine vorläufige Einigung mit dem Weißen Haus von Präsident Joe Biden. Der Deal würde dazu beitragen, die vom Kongress festgelegte Schuldengrenze für die Kreditaufnahme des Bundes anzuheben. Aber es ist noch nicht gesichert. Die Demokraten im Repräsentantenhaus sind mit einigen Zugeständnissen der Biden-Regierung in letzter Minute unzufrieden. In der Zwischenzeit unterstützen …
Note that the small blue line on Google trends for "Bitcoin" reaches the upper limit when the USA is in default with its debts. BTC could initially suffer if the markets become risk -new, but could easily shine in another global financial crisis. The Republicans in the House of Representatives achieved a preliminary agreement with the white house of President Joe Biden on the Memorial Day weekend. The deal would help to raise the debt limit for the federal government's borrowing from the congress. But it has not yet been secured. The Democrats in the House of Representatives are dissatisfied with some concessions from the bidet government at the last minute. In the meantime, support ... (Symbolbild/KNAT)

Note that the small blue line on Google trends for "Bitcoin" reaches the upper limit when the USA is in default with its debts. BTC could initially suffer if the markets become risk -new, but could easily shine in another global financial crisis.

The Republicans in the House of Representatives achieved a preliminary agreement with the White House of President Joe Biden on the Memorial Day weekend. The deal would help to raise the debt limit for the federal government's borrowing.

But it has not yet been secured. The Democrats in the House of Representatives are dissatisfied with some concessions from the bidet government at the last minute. In the meantime, the Republicans may not support the draft law, which has emerged from the recent agreement on the debt limit. US Senator Randa Paul (R-Ky) says he will not vote for it in the Senate.

US debt agreement achieved, but not final

If the debt limit is not increased, the Ministry of Finance could no longer be able to pay due invoices on June 5:

"In the United States, a loss of payment could lead to freezing the financial markets and triggering an international financial crisis. Analysts assume that millions of jobs would disappear, borrowing and unemployment rate would increase and a crash on the stock markets could destroy the assets of households in trillion. destroy. "

What would happen to Bitcoin and the price of other cryptocurrencies if the United States did not comply with its obligations? A debt failure would bring the economy into the terminal. This could easily push the crypto prices down on a wide front.

A loss of payment would press the prices for cryptocurrencies ... first of all

crypto and stock prices correlated for 18 months when the crypto winter broke in January. The correlation remained significant throughout the first half of 2023.

What if the economy comes to a standstill, crashes the stock prices and there is another global financial crisis? Crypto prices that move in correlation with stocks could suffer a crater. So if the United States will be insolvent instead of extending the debt limit soon, the macroeconomic views for crypto prices will probably be very pessimistic.

On the other hand, a US payment failure would completely mess up the financial markets. That could make Bitcoin look much better in comparison. In fact, it would rather support the thesis of the Bitcoin Permalls that centrally managed financial systems inevitably disappoint their users with corruption and misconduct.

After an initial decline in cryptopher, while the markets are risk -free, Bitcoin could get the necessary supports for a strong bull run. This happened after the series of large bankruptcies in March.

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