Bitcoin at two weeks of relief after the US debt ceiling

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Bitcoin surged to more than its two-week high amid stronger investor sentiment thanks to the agreement to raise the US debt limit.

Bitcoin surged to more than its two-week high amid stronger investor sentiment thanks to the agreement to raise the US debt limit.

Bitcoin jumped 3.2% on Monday and was trading at $28,182 as of 9:32 a.m. Singapore, around its 50-day moving average. Others ranging from Ether to Binance Coin also posted gains.

Bitcoin jumped 3.2% on Monday and was trading at $28,182 as of 9:32 a.m. Singapore, around its 50-day moving average. Others ranging from Ether to Binance Coin also posted gains.

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US President Joe Biden said on Sunday he had finalized a budget deal with House Speaker Kevin McCarthy to suspend the $31.4 trillion debt ceiling until January 1, 2025 and that the agreement was ready to go to Congress for a vote. A recent jump in Treasury yields and bets on further US monetary tightening are other potential headwinds.

This morning, the positive risk sentiment is directly linked to the resolution of the debt ceiling impasse,” said John Toro, head of trading at digital asset exchange Independent Reserve, Bloomberg reported.

Initial funding costs remain very high relative to crypto yields, resulting in negative carry for long-time holders. This will continue to prove a headwind for risk assets and the crypto complex,” he added.

The digital token currency is on a five-day winning streak, its best since March, at a time when the quarter was tough due to low liquidity and US repression.

Crypto markets have partially rebounded in 2023 after a rout last year that led to blowouts such as the collapse of the FTX exchange. But they remain far from record highs, including Bitcoin’s all-time high of nearly $69,000 in 2021.

It’s possible that the simple relief of a debt deal will bring traders back to the table and trigger the next big bitcoin price rally,” said Tommy Honan, head of market analysis at Swyftx.

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