The US Congress has not yet agreed to an increase in the debt ceiling.
“There have been no cryptocurrency-specific catalysts” driving prices, the analyst noted.
The United States must pay off its $31 trillion debt by June 1. However, it will not be able to do so if Congress does not approve an increase in its ceiling, which has not yet been agreed. This situation has generated tension in the markets, including bitcoin (BTC), point out specialists such as Riyad Carey.
According to Riyad Carey, the analyst at digital asset data firm Kaiko, “debt ceiling concerns are definitely weighing on BTC and cryptocurrencies in general”. The specialist explained to the press that this has caused bitcoin to remain these days near its monthly lows at USD 26,000.
It should be noted that the “debt ceiling” is the spending limit set by Congress that determines how much money the government can borrow. And currently the main political parties in the United States, the Democrats and Republicans, do not agree on it.
All this is also happening while the Republicans seek to cut public spending and the Democrats to raise funds from taxpayers. As reported by CriptoNoticias, on behalf of the latter, the President of the United States, Joe Biden, supports adding taxes to the cryptocurrency industry, as well as its traders.
In any case, Biden has emphasized that “default is not an option”. And, as reported informants to the press, the White House and Kevin McCarthy, the speaker of the House of Representatives of Congress, are close to reaching an agreement that would raise the debt ceiling of the United States for two years.
Market analyst Carey concluded that amid this landscape, “there haven’t been many cryptocurrency-specific catalysts.” She elaborated that, without market drivers, “we have been quite limited in the last few weeks”, which has led to prices showing difficulty in rising.
In this sense, it is to be expected that bitcoin will continue to lateralize its price or even have a relapse, as long as there are no factors that drive its demand. AND the uncertainty about whether the United States will default on its debt payment reinforces this trend for the moment, since it can discourage investors from buying risky assets in the face of bad economic omens. This can explain, among other factors, the current behavior of the market.