The debt ceiling negotiations in the United States are keeping traders on the edge. JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon told Bloomberg on May 11 that a possible sovereign default by the U.S. government could create panic in the stock markets, resulting in heightened volatility.
The next big question troubling crypto investors is how will Bitcoin react to such an event. Bloomberg’s latest Markets Live Pulse survey indicates that Bitcoin (BTC) could be the third-most preferred asset class behind gold and U.S. Treasurys should the U.S. government fail to prevent a debt default.