Short term crypto outlook turns negative as US passes Debt Ceiling Bill – Crypto News – Crypto News
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Short term crypto outlook turns negative as US passes Debt Ceiling Bill – Crypto News

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3 years ago

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Quick Take

  • The US House of Representatives passed the Debt Ceiling Bill on June 1st,
  • This provision will enable the US government to continue spending indefinitely until January 2025. The total federal debt is projected to increase to $36 trillion from $31 trillion, per The Kobessi Letter,
  • In the short term, cryptocurrencies may encounter sell-side pressure due to monetary contraction resulting from a potential increase in t-bill issuance. However, the long-term outlook is bullish as markets will experience unlimited spending.
  • Member of the Federal Reserve Board of Governors Philip Jefferson has called for a temporary pause in rate hikes to allow time for data assessment. This “skip” in rate adjustments would come at the next FOMC meeting scheduled to conclude on June 3.
  • Employment data is set for release later today, potentially bolstering support for a rate pause.
  • The current probability of a pause is 77%.
Probabilities: (Source: CME)

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