On May 28, Speaker of the US House of Representatives Kevin McCarthy announced an agreement in principle with the White House on a national debt limit. The news caused volatility in the cryptocurrency market.
I just got off the phone with the president a bit ago. After he wasted time and refused to negotiate for months, we’ve come to an agreement in principle that is worthy of the American people.
I’ll deliver a statement at 9:10pm ET. Watch here:https://t.co/vmn31INPH5
— Kevin McCarthy (@SpeakerMcCarthy) May 28, 2023
“I just spoke to the President [Джо Байденом]. After he lost time and refused to negotiate for months, we came to an agreement in principle.
The head of state also confirmed the agreement. According to him, this is an important step forward, “which reduces costs” and “represents a compromise.”
Earlier this evening, Speaker McCarthy and I reached a budget agreement in principle.
It is an important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone. And, the agreement protects my and…
— President Biden (@POTUS) May 28, 2023
“And this agreement is good news for the American people, because it prevents what could be a catastrophic default and lead to an economic recession, emptying retirement accounts and losing millions of jobs,” Biden said.
The agreement must be approved by the Republican-controlled House of Representatives and the Democratic-led Senate before the president signs it. The process may take more than a week.
The current US debt limit is $31.4 trillion. McCarthy’s plan would raise the ceiling by $1.5 trillion and cut spending by $4.5 trillion.
The stock market reacted positively to the news – futures on the Nasdaq 100 index rose by 0.59%, S & P 500 – by 0.37%.
On the night of May 29, the price of bitcoin at the moment rose above $28,400. Currently, the asset has corrected to levels near $28,000, with an increase of 2.9% over the past day (CoinGecko).
Assets from the top 10 by capitalization moved into the “green zone” after the flagship. At the time of writing, Ethereum and stETH are showing the largest increases — 3% and 3.2% over the past 24 hours, respectively.
A trader under the pseudonym Rager thanked the White House for the “exit pump” of bitcoin.
Thanks for the weekend pump White House$BTC pic.twitter.com/sQlv1LvKsD
— Rager (@Rager) May 28, 2023
Some members of the crypto community ironically opposed bitcoin and gold to printing dollars.
#Bitcoin fixes this pic.twitter.com/LolrZ4yFvL
— The ₿itcoin Therapist (@TheBTCTherapist) May 28, 2023
One of the users recalled that the US authorities are “selling bitcoins” and at the same time “printing an unlimited amount of fiat”.
Remember that USA are selling their #bitcoinmeanwhile they’re printing unlimited FIAT
Regarded move pic.twitter.com/RTvSH4Obez
— Hodlius ₿ Maximus (@MAKS_Diogenes) May 28, 2023
In early May, USDC issuing company Circle renegotiated its share of Treasury bills due to the risk of a US default.
In the same month, Bloomberg Intelligence senior strategist Mike McGlone admitted that the stock and cryptocurrency markets could suffer if negotiations to raise the US government debt limit fail.
Recall that in March, influential industry figures polled by CNBC showed a bullish attitude towards bitcoin. According to their forecasts, this year the asset can test the previous high and even reach $100,000.
In growth to this mark, but within 12 months, the founder and CEO of the analytical company Messari Ryan Selkis expressed confidence.
Analysts at Standard Chartered have given Bitcoin a longer time to reach $100,000 – until the end of 2024.
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