Quote from: retreat on Today at 08:19:25 AM

Quote from: Abiky on May 23, 2023, 03:15:47 PM

There are talks among US politicians and economists about the country defaulting on its national debt. Congress usually approves raising the debt ceiling, so I don't see what's the issue here. But if somehow the US defaults, how would the crypto market react? Positively or negatively? The USD is the reserve currency of the world, so it's likely everything (stocks, crypto, etc) will crash alongside it.

What do you think? Is a US default good or bad for crypto in the short term? Your input will be greatly appreciated. Thank you.

The possible impact on the crypto market will be felt considering that currently the US market plays a major role in influencing Bitcoin price movements, this is evident from the several times The FED raised interest rates which also affected Bitcoin prices. And if the US were to default, it would also be able to affect the crypto market globally and it is possible that there will be many crypto holders who are affected by this and it will make the crypto market conditions even more unstable this year. Hopefully between the US government and their parliament will find a bright spot related to this problem.

When the Fed raises interest rates, it will affect all assets but will benefit the USD, so bitcoin or gold falling during that time is natural. But if the US defaults, it will be the exact opposite, the USD will depreciate, and people will quickly look for alternatives, and bitcoin could be a perfect alternative and gold. So I think a US default would be more positive for bitcoin than a negative. But all possibilities are possible, so I do not expect that to happen and do not believe the US will default Grin

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