• Speaker Kevin McCarthy says President Joe Biden has failed to adequately negotiate the US debt limit.
• Analysts, including Bloomberg commodity strategist Mike McGlone, predict a financial crisis if a deal is not reached.
• President Biden and Speaker McCarthy have appointed senior members of their teams to hammer out a deal in order to avoid default.
Negotiations on US Debt Ceiling
House of Representatives Speaker Kevin McCarthy has criticized President Joe Biden for failing to properly negotiate an agreement to raise the US debt ceiling, warning of a looming default crisis. Bloomberg commodity strategist Mike McGlone predicts that failure to reach an agreement could trigger a financial crisis, with risk assets such as Bitcoin (BTC) likely taking the biggest hit.
Biden’s Response
In response, President Biden stated that he and Speaker McCarthy have appointed senior members of their respective teams to work together and reach an agreement. He also noted that his administration had significantly reduced the deficit during its first two years in office by $1.7 trillion, and proposed another cut of $3 trillion over the next decade through increased revenue from wealthy individuals and corporations as well as cuts in subsidies for Big Oil and Big Pharma.
McCarthy’s Response
In response, Speaker McCarthy said he was relieved that the president had finally agreed to negotiate on the issue, though he noted that there is still little time remaining before a potential default crisis materializes. He expressed confidence that at least some kind of resolution will be found before it is too late.
Potential Impact on Crypto Markets
The potential impact of a US debt ceiling default on crypto markets would be significant, with analysts predicting significant losses for risk assets like Bitcoin (BTC). It remains unclear exactly how severe this loss may be, though it is certain that any kind of prolonged default situation would have far-reaching consequences for global markets as a whole.