With significant progress made in the U.S. debt ceiling agreement, amid high market optimism, the cryptocurrency market rebounded strongly this morning (29th). Bitcoin broke through the $28,000 mark, out of the stagnation of recent gains.
After weeks of negotiations, U.S. President Joe Biden and House Speaker Kevin McCarthy finally reached an agreement on the debt ceiling. In response, Biden said the agreement was the result of a “compromise,” but he saw it as an “important step forward” because it removed the threat of a catastrophic default and recession. Biden also said that the agreement is now ready to be submitted to Congress for a vote, and he is optimistic that it will be passed by Congress.
McCarthy said that the agreement “has made historic cuts in spending” and plans to complete the drafting of the bill on the 28th local time and vote in Congress on Wednesday.
With the U.S. debt ceiling impasse now expected to be resolved, market sentiment turned positive, with bitcoin rising as much as 5 percent to $28,249 in early Asian trade and ether 4.9 percent higher at $1,917.
Joe DiPasquale, CEO of BitBull Capital, a cryptocurrency fund management company, said:
Bitcoin found support around $25,000 and consolidated for about two weeks before bouncing back today. It remains to be seen whether this rally will continue to $30,000, but we expect Bitcoin to test this key resistance again in the short term bit.
Joe DiPasquale added that the $22,000 to $25,000 range is solid support for bulls.