The Connection Between Politics and Coin Collecting: Biden and McCarthy’s Optimism
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In Brief
The US debt ceiling is a hot topic in crypto. Speaker Kevin McCarthy said the negotiations are progressing positively despite the disputes over spending.
The US debt ceiling has generated a lot of attention in the crypto community over the last few weeks.
House Speaker Kevin McCarthy said the debt ceiling negotiations were proceeding smoothly despite the disagreements over spending. As the deadline nears, McCarthy and Biden are optimistic about passing the debt ceiling deal hurriedly. The Treasury’s effort to cut spending could suck dollar liquidity from circulation as a result of the debt ceiling and budget negotiations, and analysts predict that crypto assets would be affected.
On January 19, the United States reached a statutory debt limit of $31.4 trillion, forcing the Treasury to implement stringent measures to reduce its General Account (TGA) balance to keep the government alive.
Due to the imminent debt ceiling deal, analysts are warning of possible problems it might cause the crypto market. Noelle Acheson, the former head of research at CoinDesk and the creator of the Crypto is Macro Now newsletter, suggested a possible negative outcome for risk assets like Bitcoin.
“Stock and bond volatility indices are finally showing some awareness of how fragile current levels are – crypto volatility indices aren’t however,” Acheson wrote.
While the debt ceiling fight may bode poorly for Bitcoin and other existing meme assets with inherent value, the opposite could be true for Wall Street Memes (WSM).
Wall Street Memes, an aggregator of internet memes, could potentially surge while typical cryptocurrencies fail. The WSM is bullish on artificial intelligence, and as the crypto market succumbs to debt ceiling panics, it can leverage the current meme and AI popularity.
- The interest in artificial intelligence has skyrocketed since ChatGPT, an AI chatbot that can respond in a human-like manner, was invented. This has prompted many companies to develop their own versions of AI chatbots. However, US President Joe Biden has expressed caution about the potential risks and benefits of AI.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
More articlesNik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
