US politicians are expected to raise the government’s $31.4tn debt ceiling for the next two years. As the debate unfolds, Bitcoin’s price has remained stable but below the psychological $30,000 level, with bulls recovering after significant losses earlier this week. There are concerns that the Treasury Department and US government could default on their obligations as early as June 2023. If a deal is reached, Bitcoin prices may rally if there’s an instance of default, and the USD could strengthen if a deal addresses concerns raised by negotiations. The crypto community is bullish on Bitcoin due to macroeconomic events and next year’s halving.
This article originally appeared on www.newsbtc.com
Following the recent infrastructure agreement in the United States between President Joe Biden and a bipartisan group of senators, one important question that’s on the minds of many in the crypto community is whether this political deal will help to save Bitcoin and other cryptocurrencies.
The infrastructure deal, which is worth $1.2 trillion, includes a proposed method of funding that would require increased scrutiny of crypto transactions. This, coupled with the ongoing regulatory uncertainty surrounding cryptocurrencies in the US, has led to concerns that the country could become less crypto-friendly, potentially harming the industry’s growth in one of its most important markets.
However, some experts believe that the infrastructure deal could actually end up benefiting the crypto market. For example, the additional scrutiny of crypto transactions could help to legitimize the industry in the eyes of regulators, while also making it easier for crypto firms to comply with existing regulations.
Additionally, the infrastructure plan includes significant investments in emerging technologies, such as broadband internet infrastructure and renewable energy sources, that could help to drive innovation and growth in the crypto industry.
Despite these potential benefits, however, there are also some reasons to be cautious. For example, the proposed crypto funding mechanism could lead to increased regulation and potentially even bans on certain types of crypto transactions, which could harm the industry’s growth. Additionally, the lack of clarity around crypto regulations in the US could continue to weigh on investor sentiment, making it more difficult for the industry to attract new capital.
Overall, it’s still too early to say whether the infrastructure deal will have a positive or negative impact on the crypto market in the US. However, what’s clear is that the industry will continue to face regulatory challenges as it strives to gain acceptance and expand its reach in one of the world’s most important markets for cryptocurrencies. As such, investors and stakeholders in the crypto market will need to be vigilant and prepared to adapt to changes in regulations and market conditions in the years ahead.
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