Bitcoin shows bullish signals

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US Secretary Janet Yellen said failure to raise the US debt ceiling could have disastrous consequences for the domestic and global economy. Bitcoin was trading flat on Tuesday. Photo: Alex Wong/Getty

Bitcoin (BTC-USD) charts revealed two bullish signals after US Treasury Secretary Janet Yellen warned that the US could be “cash-strapped and unable to pay its bills in early June.”

Bitcoin was trading at $27,578 (21,854) on Tuesday.

Over the past two days, bitcoin reserves on all cryptocurrency exchanges have plummeted, according to data from CryptoQuant.

This could suggest that investors are pulling their digital assets from exchanges and moving them to cold storage, to keep speculation on rising prices.

Read more: Live crypto prices

Another bullish price movement indicator comes from the CoinDesk Bitcoin (BTI) trend indicator which shows that long-term holders continue to increase their bitcoin holdings.

Since March 31, the 30-day change in long-term supply, defined as coins held for 155 days or more, has trended upwards, indicating bullish sentiment and dormant supply.

The BTI shows that bitcoin is in an uptrend, with prices up 68% year-to-date.

It comes as US Treasury Secretary Janet Yellen said failure to raise the US debt ceiling could have disastrous consequences for the national and global economy.

Yellen told ABC News on Sunday that if the U.S. federal government does not reach an agreement on increasing its borrowing limit, it could face a shortage of funds in early June.

As a result, the government may struggle to make payments for salaries, welfare, and other obligations.

Yellen said: “If the debt ceiling is not raised by June, then the Treasury would find itself in a position where it would be unable to pay all the bills due that day, and that would be the first time in the history of America, that we would fail to make the payments due.

Read more: Belgium’s digital minister says EU will ‘get crypto in order’ and create own blockchain | The Crypto Mile

“Whether it’s a failure to pay interest or pay Social Security beneficiaries, we simply wouldn’t have enough cash to meet all of our obligations, so it’s widely accepted that financial chaos and economics would then ensue.”

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“It’s Congress’s job to do this and if they don’t, we will have an economic and financial disaster that will be our fault,” she added.

Watch: Belgium’s digital minister: EU plans to ‘get crypto in order’ and create its own blockchain | The Crypto Mile

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