After intense negotiations, US President Joe Biden has reached a tentative deal with Republicans on the country’s debt ceiling, which could have a positive impact on crypto prices.
According to several sources report, there is now an agreement between the White House and the Republican party to raise the debt ceiling. This would avert the threat of technical bankruptcy from the US government and allow it to meet its financial obligations. However, the agreement is not yet final as the US Congress has yet to vote on it.
Possible impact on the crypto sector
The results of the ongoing negotiations could have significant implications for the entire crypto sector. A potential increase in the US debt ceiling could be interpreted as an indication of rising inflation, which could increase the attractiveness of assets like Bitcoin, which are often seen as a hedge against inflation. On the other hand, a lack of agreement could significantly undermine global consumer confidence, which in turn could drive down cryptocurrencies prices.
The announcement by the US government to raise the debt ceiling has sparked speculation within the crypto community. Opinions are divided: some believe that this measure could boost crypto prices, while others fear possible negative outcomes.
Currently, the crypto market seems to be responding mostly positively. The price of Bitcoin has shown an increase of about 2 percent in the last 24 hours. Ethereum and other major cryptocurrencies have also shown a green color in their price charts following the news.