Crypto Now Bracing for Extraordinary Treasury Measures Following Huge Bitcoin and Ethereum Price Rally

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BitcoinBTC, Ethereum and other major cryptocurrencies have soared so far this year, with the crypto’s $1 trillion price surge triggering a series of bullish price predictions for 2023.

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The price of bitcoin has recovered to where it was before the collapse of crypto exchange FTX, although these smaller cryptocurrencies have left it in the dust.

Now, with traders betting that bitcoin, ethereum and crypto price rises may just be beginning, the market is bracing for US Treasury Secretary Janet Yellen to implement “ extraordinary measures” following the US government reaching its $31.4 trillion debt limit on Thursday, January 19.

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Treasury Secretary Janet Yellen said ‘extraordinary measures’ could be used after US debt… [+] limit is reached.

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The “extraordinary measures” promised by former Federal Reserve Chairman Yellen are designed to avert the chaos in financial markets and the potential economic disaster that could be caused by the United States reaching its limit of exorbitant indebtedness, which would increase the risk that the United States would default on its debts.

“Failure to meet government obligations would cause irreparable harm to the U.S. economy, the livelihoods of all Americans, and global financial stability,” Yellen wrote in a letter to lawmakers last week. However, his measures would likely delay the government until June.

“[The ‘extraordinary measures’] will obviously include a limit on new debt that can be issued, which will reduce the supply of U.S. Treasuries and, all else being equal, push prices up and yields down,” said Noelle Acheson, author of the Crypto Is Macro Now newsletter, at Coindesk. “Lower yields imply an easier monetary environment, which is good for risky assets.”

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MORE FROM FORBESFear And Greed: Why The Huge Bitcoin And Crypto Price Pump Might Be Only BeginningBy Billy Bambrough

The price of bitcoin has soared so far this year, pulling the price of ethereum and other… [+] cryptocurrencies higher, after a brutal 2022 that wiped $2 trillion from the combined crypto market.

Forbes Digital Assets

Bitcoin, Ethereum and other cryptocurrencies have rallied this year as expectations rise that last year’s period of monetary policy tightening may be coming to an end. Inflation data last week showed that the Fed’s series of severe interest rate hikes slowed the pace of price increases.

“Bitcoin’s recent rally came on the heels of last week’s inflation data showing the consumer price index fell 0.1% in December,” said Alex Adelman, chief executive of Bitcoin. bitcoin Lolli rewards app, in email comments. “This new downward trend in inflation suggests that the Fed may moderate interest rate hikes and ease monetary policy in the coming months, which will continue to boost investor confidence and interest in the market. bitcoins.”

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