Over the past two weeks, amid fears that US President Joe Biden and the leadership of the House of Representatives will not be able to reach an agreement on raising the country’s debt limit, the value of the largest cryptocurrency has fluctuated between $ 26 and $ 27 thousand.
Edward Moya, a senior analyst at Oanda, noted that traders are not confident in the stability of BTC in the near future, as no agreement has been reached on the debt ceiling. At the same time, the expert is confident that the risk of default is minimal.
Recall that since 1960, the US government has increased the national debt limit 78 times. At the same time, the current political situation causes investors to worry about the ability of legislators to agree on raising the limit ceiling.
In a letter to the Speaker of the House of Representatives Kevin McCarthy, US Treasury Secretary Janet Yellen repeated the warning of May 15 that without a new agreement, the Treasury Department will not be able to fulfill all the government’s obligations by early June.
Yellen said that the expectation of suspending or increasing the debt limit could cause serious damage to business and consumer confidence, increase the cost of short-term loans for taxpayers and negatively affect the US credit rating.
The cost of the second largest cryptocurrency ETH has fluctuated in the range of $1.7 – $1.8 thousand over the past two weeks. At the time of writing this article, the coin is trading at $1.8 thousand. The tokens of the Tron and Avalanche TRX and AVAX platforms increased in price by 3.8% and 2.3%, respectively.
The Nasdaq Composite rose 0.5% and reached a 2023 high, while the S&P 500 and Dow Jones Industrial Average (DJIA) rose 0.2% and 0.4% in price. Treasury bond yields rose, and the price of gold fell to $1990.