The U.S. Treasury will soon run out of its cash balance, or the government will increase its debt ceiling again. Either way, market liquidity will reduce, inducing uncertainty for Bitcoin and altcoins.
from 50 basis points to 25 bps before the complete end of the hike regime by mid-2023.
It invokes risks of constrained liquidity conditions with the possibility of an adverse economic shock. For this reason, analysts warn that the second half of 2023 may see excess volatility.The Fed started its quantitative tightening in April 2022 by increasing the interest rates on its borrowings. The aim was to reduce inflation by constraining the market's liquidity.
Needless to say that the U.S. government spends more than it makes. Thus, if it can't raise debt, there'll have to be a cut in either interest rate payments or government expenditures. The first scenario means a default in U.S. government bonds which opens a big can of worms, starting with a loss of trust in the world's largest economy. The second scenario poses uncertain but real risks as failure to meet public goods payment can induce political instability in the country.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bitcoin, Ethereum Technical Analysis: ETH Falls Below $1,600 as Relative Strength Sinks – Market Updates Bitcoin NewsEthereum moved below $1,600 on Jan. 25, with bears selling previously overbought cryptocurrencies. Bitcoin also fell below $23,000.
Read more »
Cboe Plans to Go Beyond Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH) and Litecoin (LTC)Cboe made another foray into cryptocurrency market following acquisition of ErisX
Read more »
Tesla's Q4 Balance Sheet Shows Bitcoin Holdings Worth $184 Million – Featured Bitcoin NewsTesla's latest balance sheet shows bitcoin holdings worth $184 million. The company did not sell any $BTC in the fourth quarter. crypto cryptocurrency
Read more »
How to mine Bitcoin at homeReady to join the Bitcoin mining game? Learn the basics of setting up a mining rig, finding a mining pool, and the cost of electricity in this beginner-friendly guide.
Read more »
Treasury takes another ‘extraordinary’ step on debt limitU.S. Treasury Secretary Janet Yellen said in a letter she has taken an additional “extraordinary” step to buy time for President Joe Biden and Congress to raise the nation’s debt limit.
Read more »
S&P 500 Futures trace Wall Street’s clues, US Treasury yields stay pressured amid lackluster marketsS&P 500 Futures trace Wall Street’s clues, US Treasury yields stay pressured amid lackluster markets – by anilpanchal7 SP500 Futures YieldCurve RiskAppetite Markets
Read more »