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US Congress Votes to Up Debt Ceiling by $2.5 Trillion, What Does it Mean for Bitcoin?

The US government is close to postponing its federal default for at least a year after Congress finally approved a debt limit increase by a whopping $2.5 trillion.

With the potentially growing debt ceiling above $30 trillion and the enhanced mass printing of US dollars, which already causes surging inflation, the question arises – what about Bitcoin?

US Debt Ceiling Raised (Again)

The US House of Representatives approved the previous debt ceiling raise in October 2021 with a more “modest” $480 billion increase, which brought the borrowing limit to $28.9 trillion. Although the Republicans initially tried to oppose the bill’s acceptance due to the Democrats’ plans to enhance social and climate spendings, the legislation was quickly signed by President Joe Biden and came to effect.

It was known at the time that this particular limit increase won’t do any good for the country in the long run, as the next hearing was expected to be in December. As December arrived, the scenario repeated to a large extent, with Republicans seemingly trying to fight the bill but the Democrats emerging with the upper hand.

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With a 221-to-209 vote, the bill passed Congress and is now in the hands of President Biden, who is expected to sign it soon. If he does, the bill will increase the federal government’s debt limit by $2.5 trillion to $31.4 trillion. More importantly for the world’s most powerful economy, though, it will delay the threat of a federal default until at least early 2023.

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Tags: Bitcoin Joe Biden US Congress

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