A historical look at Bitcoin’s reaction to debt ceiling negotiations

Quick Take

• May 19, 2013: The U.S. debt ceiling was formally raised to approximately $16.699 trillion. The price was $116.3, with a percentage gain of 4.7%.
• October 17, 2013: The crisis ended with the passing of the Continuing Appropriations Act 2014. The price of Bitcoin was $143, with a percentage gain of 0.23%.
• October 7, 2021: The Senate voted to raise the debt ceiling. The price was $53,776 and gained 3.7%.
• December 16, 2021: Congress voted to increase the debt ceiling by $2.5 trillion, which President Biden signed into effect. The price was $47,695, and Bitcoin fell 0.11%.
• January 19, 2023: The U.S. again reached the debt ceiling. The price of Bitcoin fell 0.55%, which was at $21,085.
• To conclude, the debt ceiling negotiations are a nonevent towards Bitcoin price, and we do believe the U.S. will most likely increase the debt ceiling as they have done every other time.

Analyst

James Van Straten

Former Lead Analyst at CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century's paramount invention.

@jvs_btc LinkedIn Email James

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