Bitcoin (BTC) currently has a bearish market sentiment after falling by 0.45 percent in the last 24 hours and 2 percent in the last seven days to trade at $26,998.15. Interestingly, the price has struggled to bounce back after pulling back from $30k. In the past few days, Bitcoin has traded between $26,800-$27,400.
Ethereum has also fallen by 0.78 percent in the last 24 hours and 1.76 in the last seven days to trade at $1,807.44. However, these prices could either bounce back or break another support level to trade lower as the US debt ceiling negotiation enters a critical stage.
Could the US Breach the Debt Ceiling?
Recently, Treasury Secretary Janet Yellen disclosed that the US is still projected to breach the debt ceiling as early as June 1. This means Congress would have to act swiftly in three weeks or record its first-ever debt default. The danger in this is that the US could fall into a recession.
With additional information now available, I am writing to note that we still estimate that the Treasury will likely no longer be able to satisfy all of the government’s obligations if Congress has not acted to raise or suspend the debt limit by early June, and potentially as early as June 1.
House Speaker Kevin McCarthy and other Republicans criticized US President Joe Biden for planning to visit Papua New Guinea and also join the Quad summit in Australia as they face a possible default deadline.
White House press secretary Karine Jean-Pierre commented:
The President has made clear that members of Congress from both parties and chambers must come together to prevent default, as they have 78 times before. The President and his team will continue to work with Congressional leadership to deliver a budget agreement that can reach the President’s desk.