While a potential U.S. debt deal would eliminate major uncertainty from the market, it will have the Treasury rebuild its cash balance. That will likely put pressure on $BTC. godbole17 reports
, Treasury's cash balance will likely dip to the minimum required $30 billion in early June, which means a debt deal needs to be reached by around that point to avoid a what some believe would be a catastrophic default.
Thus, while a potential deal might eliminate major economic uncertainty, assets like bitcoin that have no linkages to the real economy and are heavily dependent on fiat liquidity could, in fact, suffer. "This could be bad for bitcoin and gold, which in theory fall in price when yields are rising ," she added."What's more, the issuance of more U.S. government debt would increase public spending, which would be good for the economy, further delaying the likelihood of rate cuts."
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