Crypto Market News: Republican Kevin Hern said the debt ceiling deal will likely be reached by Friday afternoon, after which the financial markets could see massive volatility. On Thursday, traders anticipated for positive indications from the negotiations, while no positive developments emerged since top Republican Kevin McCarthy’s Monday meeting with US President Joe Biden. Also, the Personal Consumption Expenditures (PCE) Price Index, which gauges the rates at which consumers purchase goods and services, is also due on Friday.
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Besides the inflation data, traders will be looking at which direction the talks are going, ahead of the June 1 deadline. US Treasury Secretary Janet Yellen warned that the government could go default in the first week of June 2023 if a deal is not reached. She also predicted up to 45% drop in stock prices if negotiators fail to stitch up the deal.
What If There Is No Debt Ceiling Deal
Shorters could come into play on Friday if the deal is not reached, while the crypto market could witness a jump in prices. However, reports said that Biden and Congressional leaders made progress in direction of the deal. Both sides will now have to agree on limiting the spending to $70 billion. Hence, a deal is likely more possible than not in the current circumstances, and the stock prices could likely see some jump from the positive development.
Meanwhile, the Bitcoin price saw some decline in the last 30 days, after speculation over the regional banking crisis subsided.
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