The US debt ceiling has been one of the hottest topics in crypto over the past few weeks.
In a recent development, House Speaker Kevin McCarthy Said Debt ceiling talks were progressing positively despite disputes over spending.
With just days left to default, McCarthy and President Biden are optimistic about the timely passage of the debt-limit deal.
Analysts have predicted that the debt-ceiling and upcoming budget will affect crypto assets, as the Treasury’s effort to cut spending could reduce the liquidity of dollars in circulation.
But could some cryptocurrencies benefit from this?
US Debt Limit Deal A Bearish Outlook For Crypto?
The United States reached the statutory debt limit of $31.4 trillion on 19 January, pressuring the Treasury to implement austerity measures. reduce its general account (TGA) balance To save the government.
As the debt-ceiling deal nears, analysts warn of the potential woes it could bring on the crypto market.
Noel Acheson, former head of CoinDesk and Genesis Trading and author of the Crypto Macro Now newsletter, suggested a negative outcome for risk assets like bitcoin.
acheson Said,
“Debt issuance to top-up coffers will have a positive effect, with money moving from cash and riskier assets to US governments, particularly as yields on these instruments rise to offset the increase in supply.”
“This could be bad for bitcoin and gold, in theory when yields are rising prices fall (high yield environments are not good for assets that yield nothing),” she explained.
Besides, Satyakam Gautam, rate trader at India-based bank ICICI Bank, also shared a similar view. linkedin post,
This New Coin Could Soar Amid Debt-Limit Crisis
While the debt-limit dispute may be a “bad sign” for bitcoin and other existing crypto assets with underlying value, the opposite may be true. meme coins Like Wall Street Memes (WSM).
That’s because, as a meme coin, WSM thrives around internet memes (social media jokes and images), whose value does not depend on the liquidity or virulence of the dollar.
Therefore, Wall Street Memes, an aggregator of Internet memes, could potentially soar while specific cryptocurrencies fail.
As the crypto market succumbs to debt ceiling panic, projects like WSM Bullish on AI Taking advantage of the current meme and AI popularity can stay high.
Launched on May 24, the WSM Meme Coin project has raised over $940,000 and is now about to enter presale stage 3, where the token price will rise to $0.0256.
At press time, 1 WSM token goes for $0.0253, a 2% increase from its pre-sale phase price of $0.025.