Bitcoin’s next catalyst: End of $36T US debt ceiling suspension
Bitcoin might experience a price surge as the suspension of the US debt ceiling concludes, which is likely to inject new liquidity into the markets. The debt ceiling was reached on January 20, leading to a suspension starting January 21, until March 14. During this period, Bitcoin's price fell from over $106,000 to around $82,535. Analysts expect the resumption of government spending to lead to increased liquidity and a boost for Bitcoin. Ryan Lee, chief analyst at Bitget Research, noted that fresh cash availability could enhance demand for financial assets, including crypto. However, other factors such as inflation, interest rates, and geopolitical tensions remain concerning. Aleksei Ponomarev, co-founder of a crypto index investing firm, highlighted that while liquidity increases may support a short-term price rise, Bitcoin's long-term growth hinges on institutional investments and regulatory clarity. Despite the optimism, some analysts warn of potential corrections influenced by global trade tensions affecting market dynamics, particularly with Europe implementing retaliatory tariffs. Overall, while short-term volatility persists, many analysts maintain a positive outlook on Bitcoin's price by late 2025.
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