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