Bitcoin hit a two-week high today, reaching $28,452 before sliding slightly to its current trading price of $27,916.
Market observers attribute this surge to the U.S. tentative debt ceiling deal that was reached at the end of the previous week. After months of impasse, the deal is a significant step toward averting a possible financial crisis in the U.S., which would see the nation defaulting on its debts due to a lack of funds. The agreement includes provisions to suspend the federal government's $31.4 trillion debt ceiling through January 2025 and cap spending for the 2024 and 2025 budgets. It also outlines a plan to reclaim unused pandemic funds, expedite the permitting process for specific energy projects, and introduces additional work requirements for food aid programs catering to less fortunate Americans.
A vote is planned for May 31, and the agreement will require further development and approval. Renowned author Nassim Nicholas Taleb has stirred a debate by questioning Bitcoin's role as a hedge against economic instability. Taleb, who is best known for his book "Black Swan," highlighted Bitcoin's downward trajectory during recent U.S. economic troubles, including inflation and funding risk, urging a reconsideration of Bitcoin's perceived status as a reliable economic safeguard. The scholar's insights further fueled the ongoing debate around cryptocurrency's role in global finance.
