Key Reason Why Bitcoin Just Touched Highest Level in Two Weeks

Bitcoin 47 m    Reading time: ~2 m

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.


Updated: 05/29/2023 — 06:00

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