Some issues never truly go away, and the U.S. debt ceiling, which limits the maximum amount the government can borrow, is one of them. It’s back in the spotlight, but past experience suggests it could be positive for bitcoin (BTC) and risk assets in general.
The U.S. will hit its roughly $36 trillion debt limit on Tuesday, meaning it cannot borrow more from the public to fund its operations.
“The debt limit does not authorize new spending, but it creates a risk that the federal government might not be able to finance its existing legal obligations that Congresses and Presidents of both parties have made in the past,” outgoing Treasury Secretary Janet Yellen said in an official announcement on Friday.
The very thought of the world’s largest economy unable to borrow more might scare investors, but note that a default and government shutdown won’t happen immediately. Yellen has said that the Treasury will implement “extraordinary…
