The U.S. Reaches Debt Ceiling Tonight... "Positive for Cryptocurrency"

The ballooning U.S. national debt is expected to reach its legal ceiling. As special measures to prevent a default are anticipated to be implemented in the U.S. starting on the 21st (local time), some analysts suggest that these measures could have a positive impact on the cryptocurrency market.

On the 17th, Janet Yellen, the U.S. Treasury Secretary, stated, "In a letter last month, it was expected that the debt ceiling would be reached between the 14th and 23rd," and "the Treasury will implement special measures starting the 21st."

Meanwhile, there is also a claim that the U.S. debt ceiling crisis could provide upward momentum to the cryptocurrency market.

U.S. cryptocurrency specialist media CoinDesk explained, "One of the options the Treasury can choose to overcome the crisis is to reduce the cash balance (TGA). TGA and Bitcoin (BTC) have a perfect inverse correlation," and "spending from the TGA means an increase in the funds of commercial banks, which helps liquidity and has a positive impact on the market."

Currently, the U.S. Treasury's TGA amounts to $677 billion.