Cryptocurrency prices kick-started upside moves on Sunday amidst notable market developments. Bitcoin (BTC) soared past the $27K region following the debt ceiling agreement news from President Joe Biden and Speaker Kevin McCarthy. Biden revealed the deal on Twitter (NYSE:TWTR), terming the move as crucial in reducing spending.
Earlier this evening, Speaker McCarthy and I reached a budget agreement in principle. It is an important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone. And, the agreement protects my and…— President Biden (@POTUS) May 28, 2023
Meanwhile, the President affirmed that failure to reach the tentative deal would see the U.S. economy on a disastrous default and eventually recession, crashing jobs and affecting retirement accounts. Earlier Invezz.com reported that Biden wouldn’t accept any deal benefiting cryptocurrency investors.
McCarthy revealed the deal agreement deal earlier, stating that President Biden wasted months refusing to discuss the debt ceiling. Meanwhile, the deal comes some days before the 1 June 2023 deadline – which was to attract turmoil within the financial world.
I just got off the phone with the president a bit ago. After he wasted time and refused to negotiate for months, we've come to an agreement in principle that is worthy of the American people.I'll deliver a statement at 9:10pm ET. Watch here:https://t.co/vmn31INPH5— Kevin McCarthy (@SpeakerMcCarthy) May 28, 2023
Debt ceiling reaches tentative deal
As mentioned, Biden confirmed reaching a budget deal with Speaker McCarthy. Meantime, the agreement awaits more discussions before going to the U.S. House & Senate.
The deal includes increasing the fed government’s $31.4T debt ceiling, halting a months-long standoff. Moreover, it involves capping spending and increasing the debt limit for two years.
Nonetheless, the news brought relief to the crypto market, with prices reacting to the agreement with green moves. Thus, today’s surges in the cryptocurrency space likely stemmed from rallies in the United States stock markets.
The day ahead
It remains a somewhat quiet Sunday as markets will close tomorrow due to Monday’s Memorial Day. With no economic signals from the United States, the latest updates of the U.S. preventing a calamitous default will offer support on the day ahead.
Nonetheless, market players should keep following cryptocurrency news. Updates related to Binance, SEC vs. Ripple, and Coinbase (NASDAQ:COIN) remain crucial for the markets’ outlook
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