US Debt Default Plans to Impact Bitcoin Price Forecast.

US Debt Default Plans to Impact Bitcoin Price Forecast.

The US Treasury warns of potential financial market distress and massive losses in stock markets if a deal is not met before the June 1 deadline, impacting not only the stock market but also the crypto market, as Bitcoin shows signs of probability of a price correction.

Cryptocurrency Market News: Janet Yellen, the United States Treasury, on Wednesday acknowledged there was some stress in the financial markets, amid uncertainty around the impending debt ceiling deal deadline. Yellen reiterated that the United States Government was highly likely to run out of sufficient cash in early June 2023. In the meantime, top Republican Kevin McCarthy stated earlier on Wednesday that there was no progress in the talks since his meeting with United States President Joe Biden. Any indication of failure to reach the deal before the June 1 deadline could potentially lead to financial markets catastrophe, similar to that of the July 2011 market crash.

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In this context, McCarthy is set to speak in a press conference on Wednesday. In general, a word of commitment about efforts to avoid the default is the need of the hour, not just for the stock markets but likewise the cryptocurrency market.

Bitcoin (BTC) Price Lacks Support Ahead Of United States Debt Ceiling Deadline

The United States Treasury Secretary said it would be difficult to predict the exact timeline for when the default will kick in if a deal is not met. Earlier, Yellen warned that in case of a United States debt default, there may be substantial losses in stock markets, to the tune of around 45%.

“Even in the run up to possible default, there will likely be substantial financial market distress. We are committed to not having missed payments, (I am) not involved in planning for what goes on if there is a default.”

In the meantime, not all is favorable for a Bitcoin (BTC) price jump, regardless of chances of a debt default. Going by the past few United States regional banking crisis experience, the cryptocurrency market could see some positive momentum. Nonetheless, the top digital currency shows indications of probability of a Bitcoin (BTC) price correction betwixt the $23,200 and $24,000 range, reports by Ali Charts.

“Notice that # Bitcoin (BTC) seems to be losing all major areas of support. This increases the  potential of a correction to the following important demand wall betwixt $23,200 and $24,000, where 850,000 addresses had previously purchased 340,000 $BTC.”

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