Several people in the crypto industry feel that the political standoff concerning the increase in the debt ceiling making more digital assets more alluring in the long run.
The federal government averted a major debt crisis
The federal government in the United States has now averted its major debt crisis as of now. The Senate had voted on October 7 to increase the limit of the debt by 480 billion USD. The sum was required by the biggest borrower of the world to pay off its debts until early December this year.
It was a deal that brought a temporary solution to a week-long standoff. The situation had made the investors in different parts of the world unsettled.
The Crypto market is in good shape
The system-wide uncertainty increased beyond the vote but the crypto market has been in good shape. For instance, BTC or Bitcoin has a bullish run in months. The market situation has triggered the usual claims of decoupling the cryptocurrency from the traditional asset class. Many see Bitcoin as a preferred option during times of financial or economical disasters.
Thankfully, the government of the United States has been controlling the printing press for the reserve currency of the world. It has the unique authority of fixing its debt cap. The U.S. Congress initially imposed a limit on the aggregate debt in 1939 and increased the capon on more than one hundred occasions since then.
Normally, the increase in the debt ceiling is not a partisan matter. Senate Republicans were disgusted by the ambitious climate and social spending agenda of the Democrats. The former took a strong stand and refused to support the attempts of their opponents to address the forthcoming deadline for defaulting on federal debt.