/cdn.vox-cdn.com/uploads/chorus_asset/file/23962442/acastro_STK067__03.jpg)
/cdn.vox-cdn.com/uploads/chorus_asset/file/24247717/lp_logo_3.0.jpg){kind=logo}
/cdn.vox-cdn.com/uploads/chorus_asset/file/24016885/STK093_Google_04.jpg)
/cdn.vox-cdn.com/uploads/chorus_asset/file/24808816/Starfield__The_Settled_Systems___Supra_Et_Ultra_____Starfield__The_Settled_Systems___Su)
[ad_1]
Look at that little blue line for “bitcoin” on Google Trends, hitting the ceiling if the US defaults on its debt. BTC may suffer losses at first as the market turns risk-off, but could easily shine in another global financial crisis.
House Republicans reached A tentative deal with President Joe Biden’s White House over Memorial Day weekend. The deal would help raise the debt limit imposed by Congress on federal borrowing.
But it is not certain yet. House Democrats are unhappy with some of the last-minute concessions made by the Biden administration. Meanwhile, Republicans can’t hold back a bill born out of the recent debt ceiling deal. US Senator Rand Paul (R-KY) says he will not vote for it in the Senate.
US debt deal reached, but not final
Treasury could start Running short to meet bills by June 5 if loan limit is not increased:
“In the United States, a default could freeze financial markets and spark an international financial crisis. Millions of jobs would be lost, lending and unemployment rates would soar, and the stock market would collapse,” analysts say. That could wipe out trillions of dollars in household assets. It would break up the $24 trillion market for Treasury debt.
What will happen to the price of bitcoin and other cryptocurrencies if the US defaults on its obligations? A loan default would put the economy in deep jeopardy. This could easily push crypto prices down across the board.
Default will tank crypto prices…at first
Crypto and stock prices were in correlation for 18 months when the crypto winter melted away in January. Through the first half of 2023, the correlation remains significant.
What if the economy shuts down, stocks take a dive, and there’s another global financial crisis? Crypto prices moving in correlation with stocks would be apt to crater. So if the US defaults rather than expanding the debt limit soon, the macro outlook for crypto prices will likely be very bearish.
On the other hand, a US default would completely disorganize the financial markets. By comparison it may outperform bitcoin. In fact, this would tend to support the bitcoin permabulls’ thesis that a centrally managed financial system inevitably frustrates its users with corruption and mismanagement.
So after an initial slide in crypto prices while markets turned risk-off, bitcoin may have found some legs beneath it for a strong bull run. This is what happened after a series of major bank failures in March.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
[ad_1]
Look at that little blue line for “bitcoin” on Google Trends, hitting the ceiling if the US defaults on its debt. BTC may suffer losses at first as the market turns risk-off, but could easily shine in another global financial crisis.
House Republicans reached A tentative deal with President Joe Biden’s White House over Memorial Day weekend. The deal would help raise the debt limit imposed by Congress on federal borrowing.
But it is not certain yet. House Democrats are unhappy with some of the last-minute concessions made by the Biden administration. Meanwhile, Republicans can’t hold back a bill born out of the recent debt ceiling deal. US Senator Rand Paul (R-KY) says he will not vote for it in the Senate.
US debt deal reached, but not final
Treasury could start Running short to meet bills by June 5 if loan limit is not increased:
“In the United States, a default could freeze financial markets and spark an international financial crisis. Millions of jobs would be lost, lending and unemployment rates would soar, and the stock market would collapse,” analysts say. That could wipe out trillions of dollars in household assets. It would break up the $24 trillion market for Treasury debt.
What will happen to the price of bitcoin and other cryptocurrencies if the US defaults on its obligations? A loan default would put the economy in deep jeopardy. This could easily push crypto prices down across the board.
Default will tank crypto prices…at first
Crypto and stock prices were in correlation for 18 months when the crypto winter melted away in January. Through the first half of 2023, the correlation remains significant.
What if the economy shuts down, stocks take a dive, and there’s another global financial crisis? Crypto prices moving in correlation with stocks would be apt to crater. So if the US defaults rather than expanding the debt limit soon, the macro outlook for crypto prices will likely be very bearish.
On the other hand, a US default would completely disorganize the financial markets. By comparison it may outperform bitcoin. In fact, this would tend to support the bitcoin permabulls’ thesis that a centrally managed financial system inevitably frustrates its users with corruption and mismanagement.
So after an initial slide in crypto prices while markets turned risk-off, bitcoin may have found some legs beneath it for a strong bull run. This is what happened after a series of major bank failures in March.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
