Will the US debt ceiling affect the price of bitcoin?

A political deadlock looms over the U.S. debt ceiling and its potential impact on the price of Bitcoin, which is already up 75% in 2023. On April 26, the United States House of Representatives passed a bill to increase the U.S. debt ceiling.

What is a debt ceiling?

The debt ceiling represents the maximum amount of money the U.S. government can borrow to pay its bills. Related: Fed balance sheet adds $393B in two weeks — Will this send Bitcoin price to $40K? Raising it means it can issue more debt to generate more capital.

Is US debt ceiling crisis a catalyst for crypto's ultimate decoupling?

US debt ceiling crisis: A catalyst for crypto’s ultimate decoupling? Many in and beyond the crypto industry believe that the political standoff around the debt ceiling increase makes digital assets more attractive in the long run. The United States federal government’s default on its debt has been averted — at least for now.

Are alternative currencies causing a debt ceiling crisis?

The rise of alternative currencies—including gold, Bitcoin, and the yuan—can only diminish its influence, and there is a looming risk that could accelerate this trend. I’m referring to the impending debt ceiling crisis, which could see Republicans tank America’s creditworthiness while engaging in a needless political stunt.