The debt limit crisis continues in the USA. US stock markets continue to be negative as markets price risks related to US default.
Bitcoin, which has been resisting the decline in the stock markets for a while, fell to $26144 before the statements of US Treasury Secretary Janet Yellen.
Here are the latest statements by US Treasury Secretary Janet Yellen:
- It is possible that we will run out of cash by the beginning of June, but it is difficult to predict when the resources will run out.
- We set June 1 as the deadline for debt default. Before this date, we will give the necessary information to the congress so that the congress will take a step and remove the debt limit.
- I believe a deal is possible so that the US does not default.
- Unless Congress raises the debt limit, Biden and the Treasury will have to make tough choices.
- He offered Joe Biden's amendment proposal that would reduce our deficit by $1 trillion.
- Prioritizing payments is not operationally possible.
- There is stress in the financial markets, including bond auctions.
- In a possible default, a squeeze in the financial markets is possible.
- If we default, we are determined not to interfere with related plans.
- Inflation drops significantly
Losses on the Nasdaq reached 1% at the time of Yellen's comments.
There has never been a default in the US before in the history of Bitcoin. As in the bank crisis, the possibility of a positive reaction to a possible default in the USA should not be ignored.
A US default is a situation that will weaken the strength of the dollar. In this chart, gold and Bitcoin can be a good alternative for escape. In order not to be affected by short-term fluctuations, risk management should be done well and leveraged transactions should be avoided.
*Not Investment Advice.
