Will Bitcoin feel the tremors as the US debt limit deadline approaches

• The US debt deadline could have a positive impact on BTC.
• Bitcoin adoption increased while the influx of exchanges decreased.

In a recent interview, Arthur Hayes said the deadline for the US debt ceiling could be beneficial Bitcoin [BTC]. For the uninformed, the US debt ceiling refers to the maximum amount of debt the country is allowed to borrow.

How many Worth 1,10,100 BTCs today?

Potential return on rising payment arrears

When the debt ceiling reaches its limit, it can have significant economic and financial consequences. Hayes, who was speak on the “What Bitcoin Did” podcast hosted by Peter McCormack noted that the 4.9% inflation rate, coupled with the deadline, could spell doom for the US economy.

So, as a result, residents of the country could start looking towards digital assets like Bitcoin for security. However, the former CEO of BitMEX believed that despite the banking crisis. Instead, they would follow the “sinking ship” as the US would try to print more money.

The Financieele Dagblad reported on 27 May reported that the US may miss the June 5 deadline to pay its debt. County Treasury Secretary Janet Yellen said the government could run out of money. She also said printing more dollars might not solve the problem.

Earlier, on June 1, Yellen had written to Congress to act quickly. In the letter, addressed to House Speaker Kevin McCarthy, Yellen said:

“Based on the most recent data available, we now estimate that the Treasury will have insufficient funds to meet the government’s obligations if Congress does not increase or suspend the debt limit by June 5.”

However, Congress responded that it was working to ensure it does not default on the $31.4 trillion cap. Meanwhile, it emerged that new entrants were already adopting Bitcoin, based on Santiment’s data.

Growth in acquisition

According to the on-chain analytics platform, the number of addresses holdings between 0 and 1 coin have increased since April.

Source: Sentiment

This supply distribution suggests increased activity within the retail cohort. In terms of circulation, Santiment showed that BTC had risen. At the time of writing, its 30-day circulation was 1.17 million.

Is your wallet green? Check the Bitcoin Profit Calculator

Circulation emphasizes the number of unique coins traded within a certain period. The rise thus implies that the amount of BTC engaged in buying and selling has improved from the recession a few weeks ago.

Also, Bitcoin exchange inflows had dropped to 3105. The drop in this metric means fewer deposits to exchanges. So there can be one decrease in the motive to reduce positions while resisting selling pressure.

Source: Sentiment