Too much debt. For a long time, the United States has been living well beyond its means and get into debt. To the point that their borrowings over the last decades now reach a total of 36,000,000,000,000 dollars. However, this also corresponds to the debt ceiling (debt ceiling) what the US government could afford until now. While waiting for a umpteenth bearing of this ceiling, this inability to borrow more will lead to blockages to the news from the US Treasury. But all this could be bon pour Bitcoin (BTC).
- The United States has reached an astronomical debt level of $36 trillion, causing the US Treasury to freeze borrowing.
- The US Treasury will be forced to take “extraordinary measures”, which could have a positive impact on Bitcoin and risk assets.
This Tuesday, January 21, 2025, the administration Biden leave as poisoned gift to the newly inaugurated (since yesterday) president Donald Trump an American debt which reaches its maximum ceiling which was set at 36 trillion dollars.
A situation which will force the US Treasury to take “ extraordinary measures » while the transition with the former Democratic government has barely taken place. Among these emergency measures, the United States Department of Finance could act with its ” general account of the Treasury » (Treasury General Accountor TGA).
-This US government account with the Federal Reserve (Fed) is used as well for collect revenue of the State (taxes, customs duties, etc.) only for make payments (salaries of civil servants, payments to pension funds, etc.). And as CoinDesk reports, during the previous debt ceiling freeze early 2023a use of the TGA by the Treasury then had “a positive impact on risky assetsincluding Bitcoin ».
Because by using the balance of the TGA, its liquidity is paid into accounts commercial banks. With the amount of their reserves Who increasethe latter then have “a better ability to lend moneywhich can increase lending or investment in the broader economy and financial markets.” What further boost Bitcoin and the crypto-asset sector? In any case, BTC price reached new high at $109,000 this January 20, the day of Donald Trump’s inauguration as 47e president of the United States.
