Crypto Market Turns Green Post U.S Debt Ceiling Extension

• According to CMC, Bitcoin (BTC) is trading 3.5% higher at $28,009.
• Any possible failure will lead to a market crash and economic instability.

Bitcoin (BTC) jumped more than 3.4 percent during the early hours of trading on Monday, May 29. This occurs when the United States is ready to increase its debt limit from its present level of $31.4 trillion.

According to CMC, Bitcoin (BTC) is trading 3.4% higher at $28,009 with a market valuation of $542 billion at the time of publication. Ether (ETH) and other leading cryptocurrencies have lately exhibited a significant surge, rising over 3% with BTC.

Possible Failure Will Be Devastating

Markets throughout the world have been boosted by optimism about a potential debt limit agreement between President Joe Biden and House Speaker Kevin McCarthy. However, in order to avert a possible default, the accord must still pass through the US Congress. Any possible failure will lead to a market crash and economic instability.

Potential headwinds include the rise in Treasury Yields and wagers on a US monetary tightening. Despite significant downward pressure, Bitcoin has now risen for five consecutive days. This is the longest winning run for Bitcoin since March.

After a harsh winter in 2022, crypto investors have found success so far in 2023. Bitcoin address activity seems to be on the upswing, according to on-chain statistics, after reaching a monthly low earlier this week. During the last three weeks, BTC address activity has skyrocketed.

The research highlights that Bitcoin address activity is gradually increasing again after dropping to a worryingly low level in May. Now all eyes are on the Federal Reserve interest rate hike. IMF has urged the Fed to increase interest rates in order to curb inflation.