- US President Joe Biden and the Republican member Kevin McCarthy decided to suspend the US debt ceiling.
- The announcement has been a solace to the crypto industry which was immersed in uncertain financial conditions.
- Following the announcement, BTC and ETH showed significant price hikes.
In a turn of events, US President Joe Biden and the top Congressional Republican Kevin McCarthy have discussed and decided on a tentative deal to resolve the government’s debt ceiling by raising $31.4 trillion. Though announced without any celebrations, the compromising agreement is a solace for the crypto industry that has been troubled by the US debt ceiling.
The cryptocurrency market has been immersed in uncertain conditions in the negotiations on the US debt ceiling. Recently, the financial expert Robert Kiyosaki predicted an impending crisis that would fall on the entire US.
Since the US Treasury Secretary Janet Yellen warned that the country would run out of cash by June 1, if the debt ceiling isn’t resolved, even the leading cryptocurrencies including Bitcoin and Ethereum started showing further plummet; BTC had fallen by more than 7% and ETH by more than 3%.
On May 27, the President and the Republican Party member joined hands to suspend the federal government’s debt ceiling. As per the report, the exact details of the agreement were not revealed. It was informed that the government’s spending till 2025 would be limited; the expenses related to national security would be excluded from the limit.
Following the announcement, Biden took to Twitter to share the news of the “budget agreement”:
Earlier this evening, Speaker McCarthy and I reached a budget agreement in principle. It is an important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone. And, the agreement protects my and…— President Biden (@POTUS) May 28, 2023
Biden acknowledged the deal as an “important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone”. He added that the agreement represents a “compromise”, pointing out the responsibility of the government.
The President commented that the agreement would benefit the public, stating:
And, this agreement is good news for the American people, because it prevents what could have been a catastrophic default and would have led to an economic recession, retirement accounts devastated, and millions of jobs lost.
Subsequently, the crypto market began showing a positive trend with Bitcoin and Ethereum exhibiting substantial hikes. According to CoinMarketCap, Bitcoin is currently trading at $27,219.20, up 1.85% in the last 24 hours. Similarly, Ether has also shown a significant increase of 0.93%, currently trading at $1, 849.21.
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