Here’s why Bitcoin price could correct after the US government resolves the debt limit impasse

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The U.S. Treasury will soon run out of its cash balance, or the government will increase its debt ceiling again. Either way, market liquidity will reduce, inducing uncertainty for Bitcoin and altcoins.

from 50 basis points to 25 bps before the complete end of the hike regime by mid-2023.

It invokes risks of constrained liquidity conditions with the possibility of an adverse economic shock. For this reason, analysts warn that the second half of 2023 may see excess volatility.The Fed started its quantitative tightening in April 2022 by increasing the interest rates on its borrowings. The aim was to reduce inflation by constraining the market's liquidity.

Needless to say that the U.S. government spends more than it makes. Thus, if it can't raise debt, there'll have to be a cut in either interest rate payments or government expenditures. The first scenario means a default in U.S. government bonds which opens a big can of worms, starting with a loss of trust in the world's largest economy. The second scenario poses uncertain but real risks as failure to meet public goods payment can induce political instability in the country.

 

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If that happens I will buy as much cheap bitcoin as I can in ownr

I think FUD

Long term.

There are still so much uncertainties out there, but do they outweigh the positivities?

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