Biden’s Debt Negotiations: Will Bitcoin Take a Hit?

• House of Representatives Speaker Kevin McCarthy says President Joe Biden is failing to adequately negotiate the raising of the US debt limit.
• Many analysts predict a financial crisis if a deal is not reached, and that risk assets like Bitcoin (BTC) would fare the worst.
• President Biden addressed the nation this morning, saying that he believes an agreement to avoid a default is imminent.

Speaker McCarthy on Negotiations with Biden

House of Representatives Speaker Kevin McCarthy has expressed concern over President Joe Biden’s lack of negotiations for raising the US debt limit, warning that it should make people nervous. With a dangerously tight deadline looming, many analysts are predicting dire financial consequences if an agreement isn’t reached, including potentially damaging effects on risk assets like Bitcoin (BTC).

Concerns Over Debt Default

McCarthy has repeatedly criticized the president for not negotiating and has gone on record saying “I never wanted to be working towards a deadline.” He also believes that while the timeline is very tight, an agreement can still be made and that ultimately it will not come down to a debt default.

Framework For Negotiation Established

The two sides have finally worked out a framework in order to begin productive negotiations. This includes both McCarthy and Biden appointing senior members from their respective teams to hammer out an agreement.

President Addresses Nation

President Biden addressed the nation this morning, expressing his confidence in reaching an agreement before June 1st: “Yesterday, we all agreed that both speaker McCarthy and I would designate senior members, that we would negotiate…I’m proud of the progress my administration has made.” He also highlighted some of his proposed initiatives designed to reduce deficits by $1.7 trillion in two years as well as $3 trillion over 10 years through increased revenue from wealthy individuals and corporations as well as cutting existing subsidies for Big Oil and Big Pharma.

Moving Forward It appears there may be light at end of tunnel when it comes to avoiding default on US debt–at least according to Speaker McCarthy and President Biden. Both sides have committed themselves towards negotiation in order meet June 1st deadline before any potential disaster could ensue.