Crypto market up due to imminent debt ceiling vote

Summary of important points

Crypto Market Cap Reaches $1.16 Trillion

Over the weekend, the cryptocurrency market performed well, with most coins and tokens trading in the green zone. The total cryptocurrency market cap has reached $1.16 trillion for the first time this month.

This rally is due to an agreement between President Biden and the House leadership on the United States’ debt ceiling. Over the weekend, President Biden and congressional Republican Kevin McCarthy agreed to suspend the federal government’s $31.4 trillion debt ceiling. However, this deal still needs to pass through Congress later this week, with the vote expected to take place on Wednesday before the United States runs out of money to pay its debts in early June.

Investors are optimistic that the United States will not default on its debt, which could result in a recession and massive losses in the financial markets.

Bitcoin Rallies To $28k

Bitcoin, the world’s leading cryptocurrency by market cap, has reached $28k for the first time in three weeks. Bitcoin started May trading above $29k per coin but experienced a significant drop last week, hitting a low of $26,008. At present, the price of Bitcoin stands at $27,953 per coin.

The positive news from the United States has helped Bitcoin’s price to slowly recover. Ether, the second-largest cryptocurrency globally, has also surpassed the $1,900 level for the first time in weeks, adding more than 3% to its value in the last 24 hours. At present, the price of Ether stands at $1,904.