Bitcoin surged to two-week high of $28,452, which was likely in response to tentative deal reached in U.S. to suspend federal government’s $31.4 trillion debt ceiling
Bitcoin hit a two-week high today, reaching $28,452 before sliding slightly to its current trading price of $27,916.
Market observers attribute this surge to the U.S. tentative debt ceiling deal that was reached at the end of the previous week.
After months of impasse, the deal is a significant step toward averting a possible financial crisis in the U.S., which would see the nation defaulting on its debts due to a lack of funds.
The agreement includes provisions to suspend the federal government’s $31.4 trillion debt ceiling through January 2025 and cap spending for the 2024 and 2025 budgets. It also outlines a plan to reclaim unused pandemic funds, expedite the permitting process for specific energy projects, and introduces additional work requirements for food aid programs catering to less fortunate Americans.
A vote is planned for May 31, and the agreement will require further development and approval.
As reported by U.Today, renowned author Nassim Nicholas Taleb has stirred a debate by questioning Bitcoin’s role as a hedge against economic instability.
Taleb, who is best known for his book “Black Swan,” highlighted Bitcoin’s downward trajectory during recent U.S. economic troubles, including inflation and funding risk, urging a reconsideration of Bitcoin’s perceived status as a reliable economic safeguard.
The scholar’s insights further fueled the ongoing debate around cryptocurrency’s role in global finance.
Source: https://u.today/key-reason-why-bitcoin-just-touched-highest-level-in-two-weeks