The U.S. is on track to hit its $36 trillion borrowing limit on Tuesday, triggering the Treasury to implement “extraordinary measures” to manage spending. While this might sound ominous, past debt ceiling episodes suggest it could actually benefit Bitcoin and other risk assets. When the Treasury spends down the Treasury General Account (TGA), cash flows into the broader economy, potentially boosting lending and investments. Historically, these drawdowns have coincided with Bitcoin bull runs, according to CoinDesk.
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Musk Weighs in on Bitcoin and Inflation
Meanwhile, Elon Musk has added his own spin to the crypto conversation. Responding to a post on X, Musk suggested that solving inflation could lower the dollar price of Bitcoin, Dogecoin, and other cryptocurrencies. “What matters is the ratio of dollars to crypto,” Musk explained. Traders are also betting on Musk’s influence within Donald Trump’s pro-crypto administration, further fueling excitement for Bitcoin’s future.
At the time of writing, Bitcoin is sitting at $105,160.00.
