The White House recently confirmed that US President Joe Biden will meet Republican Kevin McCarthy to restart debt ceiling deal talks, with the outcome having potential ripple effects on the crypto market. These talks will determine if the US government defaults on some of its debts or not, and many believe that the crypto market, particularly Bitcoin, could see some turbulence depending on how the financial market reacts.
With US Fed officials apparently favoring a hike on rates over 6%, some are asking if a Bitcoin crash is imminent. In the past, the White House warned that the financial market could plummet by 45% if the US economy defaults. Nevertheless, Bitcoin might stand to benefit from such a spillover effect as it is often seen as a “safe bet” during tumultuous times, generating high returns during instability.
A previous example of this occurred in March 2023, when the US regional banking crisis erupted. In such situations, Bitcoin has been known to surge as investors seek refuge in its perceived safety.
Ahead of the June 1, 2023 debt ceiling deadline, President Biden aims to build consensus around actions to take if the debt ceiling is not raised. According to a communique from the White House, Biden will meet McCarthy on Monday, 22 May 2023, at 5:30 P.M. EST (2130 GMT). This meeting is an extension of a phone call between the two leaders over the weekend regarding the urgency of making a decision on the matter.
The impact of this meeting on the cryptocurrency markets is still uncertain. Nevertheless, the correlation between the debt ceiling’s influence on the financial market and the subsequent impact on cryptocurrencies like Bitcoin is worth considering. With Bitcoin’s history of weathering financial storms and potentially benefiting from market chaos, crypto enthusiasts will be keeping a watchful eye on the Biden-McCarthy meeting’s outcome.
However, it is crucial for investors to do their market research before investing in cryptocurrencies, as this article presents the author’s personal opinion and is subject to market conditions. The author and publication do not hold any responsibility for individual financial losses resulting from investment decisions.
Source: Coingape
