Short term crypto outlook turns negative as U.S. passes Debt Ceiling Bill

Quick Take

• The U.S. House of Representatives passed the Debt Ceiling Bill on June 1.
• This provision will enable the U.S. government to continue spending indefinitely until January 2025. The total federal debt is projected to increase to $36 trillion from $31 trillion, per The Kobessi Letter.
• In the short term, cryptocurrencies may encounter sell-side pressure due to monetary contraction resulting from a potential increase in t-bill issuance. However, the long-term outlook is bullish as markets will experience unlimited spending.
• Member of the Federal Reserve Board of Governors Philip Jefferson has called for a temporary pause in rate hikes to allow time for data assessment. This “skip” in rate adjustments would come at the next FOMC meeting scheduled to conclude on June 3.
• Employment data is set for release later today, potentially bolstering support for a rate pause.
• The current probability of a pause is 77%.

The post Short term crypto outlook turns negative as U.S. passes Debt Ceiling Bill appeared first on CryptoSlate.