Debt Ceiling Bill Passes US House, Bitcoin Trades Below $27,000

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The House of Representatives passed the highly controversial debt ceiling bill on Wednesday, averting a major economic disaster in the country and around the world. The US House of Representatives passed the debt ceiling bill by a vote of 314 to 117, with defections from both sides of the aisle to send the bill to the US Senate.

Bitcoin price jumped from $27,100 to nearly $26,600 on the heels of this news. The major cryptocurrency is trading down 3% in the past 24 hours.

The US government will reach its borrowing limit on Monday, June 5

After getting the approval vote from the House of Representatives, the bill must now pass the US Senate later this week before President Joe Biden can sign it into law. The US government will reach the deadline to raise the debt ceiling next Monday and default on its debt. However, the main hurdle was cleared as the two political parties agreed on the bill. 71 Republicans and 46 Democrats voted no to the debt ceiling bill heading to the US Senate.

The current debt ceiling bill provides no solution to government debt; it just suspends the debt ceiling until 2025, when the US government will have to start the whole process all over again.

Bitcoin trades below $27,000 amid rate hike fears

At the time of writing, the major cryptocurrency bitcoin is trading just above $26,700, down 3.27% in the last 24 hours. Bitcoin briefly fell to $26,650 on news of the US debt ceiling bill passing the House of Representatives on Wednesday night. If the debt ceiling bill becomes law before June 5, the US Treasury will print trillions of dollars to save the country’s economy, which could lead to another rate hike announcement by the Federal Reserve. next month. The Federal Open Market Committee (FOMC) will meet on June 15-16 to announce its decision on interest rates.

Jai Pratap is a crypto and blockchain enthusiast with over three years of experience working with different major media houses. His current role at CoinGape includes creating high-impact web stories, breaking news coverage, and writing editorials. When he’s not working, you’ll find him reading Russian literature or watching a Swedish movie.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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