According to some analysts, it is possible that this debt ceiling deal will bring traders back to the negotiating table and trigger a new bull run in Bitcoin.
According to information published by Bloomberg, Bitcoin climbed to its highest price in more than two weeks today amid crypto investor sentiment boosted by the agreement to raise the US debt limit.
Accordingly, the world’s largest digital currency has gained 3.2% and is currently trading at $28,041, hovering around the 50-day moving average. Smaller tokens from Ether to Binance Coin also saw slight gains.
It is known that this positive increase in the price of Bitcoin comes from the debt ceiling agreement between President Joe Biden and Speaker of the House Kevin McCarthy. While the outcome is an initial success for Mr. Jooe Biden, the deal is likely to need swift congressional approval to prevent a US debt default.
Commenting on the market landscape under the impact of the deal, John Toro, head of trading at digital asset exchange Independent Reserve, said:
“The positive risk sentiment this morning is directly related to the resolution of the deadlock on the debt ceiling. Because the cost of end-to-end funding is still high compared to the returns from cryptocurrencies, resulting in negative returns for long-term holders. This will continue to prove a headwind for risk assets and crypto complexes.”
According to Tommy Honan, head of market analysis at cryptocurrency exchange Swyftx, said:
“It is possible that a slight reduction in the debt agreement will bring traders back to the negotiating table and trigger the next big bull run for Bitcoin.”