Bad news for the United States – the country could soon go bankrupt. Bankruptcies could affect cryptocurrencies, but perhaps not as expected.
Panic in the US – Will the Coffers Be Empty Soon?
With the United States still dealing with the collapse of its banks, especially with the recent bankruptcy of the First Republic, the disaster may only be beginning.
according to a report According to the Wall Street Journal, the financial situation of the United States could deteriorate at a high speed during the month of May.
Treasury Secretary Janet Yellen announced that the country could default on its public debt by June 1 if Congress does not raise the debt limit.
Without Congress raising the debt limit, the United States will default on its payments for the first time. President Joe Biden will meet with some members of Congress to discuss the matter.
A default would put the country’s coffers in the red once and for all. Thus, the situation can only be resolved by obtaining new loans.
This is a situation to which modern states are accustomed but which can be fatal. Especially at a time when the dollar is more of a threat than ever.
Rather, the list is gradually expanding with regard to foreign countries that are turning to other alternatives to commercial settlement.
At the moment, the US government has not yet provided a solution to the problem, which will be discussed next week. However, according to the WSJ, no agreement will be found anytime soon.
How would crypto react in a US bankruptcy?
If the United States goes bankrupt, cryptocurrencies will rub their hands. In fact, as Bitcoin (BTC) has become a safe haven, supported by its relationship to gold, many Americans can invest in cryptocurrency in order to protect their savings.
Thus, cryptocurrencies can become an alternative option. This is at a time when El Salvador or Bulgaria could become the richest countries due to their bitcoin holdings. However, commodities like gold are still serious competition.
For now, the Fed will share its forecasts soon. The result could have an impact on the Bitcoin price. Industry experts Expect Raise the interest rate by 25 basis points.
Moral of the story: the economy is collapsing, but bitcoin is still going strong!
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