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News

Bitcoin Crosses $27,000 After New Agreement To Raise The Debt Ceiling

May 28, 2023 - Around 3 mins mins to read

Key Points:

  • Bitcoin (BTC) price surged past $27,000 after the White House and House Republicans reached an agreement in principle to raise the debt ceiling and limit spending.
  • If passed, tonight’s deal would not only expand the debt ceiling but also include a deal to finance the government over the next two years.
Bitcoin Crosses $27,000 After New Agreement To Raise The Debt Ceiling
US President Biden and Speaker of the US House of Representatives McCarthy have reached an agreement in principle on the debt ceiling. Bitcoin (BTC) price recovered quickly to the $27,000 level.

The White House and Republican negotiators have reached a preliminary agreement to raise the US debt ceiling and avoid a default that could shake the global economy, people familiar with the matter said.

US President Joe Biden and US House of Representatives Speaker McCarthy must now steer a long-discussed framework deal through the final passage of legislation, despite opposition from hawkish lawmakers bipartisan. US Treasury Secretary Yellen warned that the debt ceiling extension must be completed by June 5 to avoid a historic default.

“After weeks of negotiations, we have come to an agreement in principle. We still have a lot of work to do but I believe this is an agreement in principle that is worthy of the American people,”

McCarthy said during a brief statement to reporters.

If passed, tonight’s deal would not only expand the debt ceiling but also include an agreement to fund the government for the next two years, according to a Democratic source familiar with the negotiations.

That means Congress will skip the shutdown war slated for this fall and launch the next funding war after the 2024 election. In addition, US House of Representatives Speaker McCarthy is scheduled to brief Republicans on the debt ceiling agreement at 9:30 pm local time.

Receiving positive news after a prolonged stalemate, BTC price quickly recovered from $26,700 to $27,100.

Bitcoin Crosses $27,000 After New Agreement To Raise The Debt Ceiling
24h BTC price chart. Source: CoinMarketCap

As investors watch the ongoing debt ceiling negotiations in Washington and Fed officials split over rate hikes, bitcoin has begun to act as a risk asset once again, just like it started to be traded more along with gold earlier this year.

The market also warmed up along with the recovery of the largest coin. Ethereum (ETH), along with other altcoins, all recorded slight gains of 1-3%.

Bitcoin Crosses $27,000 After New Agreement To Raise The Debt Ceiling
Source: Coin360

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