US Debt Ceiling Expansion Strengthens Bitcoin (BTC) Price

In the aftermath of a recent period of price decline, Bitcoin (BTC) is exhibiting signs of a possible recovery. As evidence, its price increased by more than 2.5% the previous day.

This increase coincided with a CNBC report about an agreement between United States President Biden and House Speaker Kevin McCarthy to raise the nation’s debt ceiling.

Alongside Ether (ETH) and other prominent alternative cryptocurrencies, Bitcoin (BTC) has responded positively to this news. Bitcoin (BTC) was trading at $27,929, a 2.59% increase from its previous pricing. Additionally, its market capitalization exceeded $541 billion.

Notably, Bitcoin is not the only digital currency reacting to the potential for a debt ceiling increase. Ether (ETH) and many other prominent altcoins have each experienced gains of greater than 2% over the past 24 hours.

President Joe Biden intended to prevent the United States government from defaulting for the first time. As a result, the president and Kevin McCarthy, the Republican speaker of the House, have reached an agreement to raise the debt ceiling. Under the agreement, the parties will collaborate to ensure that Republicans and Democrats in Congress reach a compromise and vote unanimously within the next week to adopt the measure.

Regarding the agreement reached on Sunday, President Biden clarified that his primary objective is to avert the potential dangers of a federal default on June 5. He stated:

“The agreement prevents the worst possible crisis, a default, for the first time in our nation’s history.”

In addition, the president emphasized the importance of bipartisan cooperation in Congress to enact the bill, recognizing the limited time available swiftly. Biden urged the two parties to put aside their divergent ideologies and work together to avert the imminent threat of default.

A government default by the United States could have such severe repercussions that it could spark a global financial crisis.