Bitcoin rose above the $27k level a few hours ago and has remained there as the general sentiment improves.
The total cryptocurrency market cap stays above $1.14 trillion once again.
Bitcoin Steadies Above $27k
Bitcoin, the world’s leading cryptocurrency by market cap, is trading above $27k once again. The coin has rallied by more than 1% over the last 24 hours and currently trades at around $27,300 per coin.
The positive performance comes as investors continue to watch the development of the debt ceiling in the United States.
Market experts believe that President Joe Biden and House leadership might not reach an agreement soon about raising the debt ceiling. As a result, investors are expected to rush into the cryptocurrency market as a hedge against the US dollar, which could experience a bearish trend if the US defaults on its debt payment.
According to Secretary Janet Yellen, failure to reach an agreement soon could see the US surpass its debt limit by June 1st. She stated that;
“We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States. We have already seen Treasury’s borrowing boats increase substantially for securities maturing in June.”
In addition to this, cryptocurrency investments in Nigeria and Pakistan have increased dramatically over the past few years despite government efforts to curb them.
The rising inflation in those countries and other economic factors have pushed many people in those countries to turn to cryptocurrencies to hedge their wealth.