House of Representatives Gives a Go-Ahead to the “Debt Limit” Law, Bitcoin Negatively Diverges!

Betty Ligmart June 3, 2023

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The law lifting the debt limit in the US has received the green light.

The legislation to lift the debt limit has been approved by The US House of Representatives. The legislation was the final obstacle that was preventing the US to default.

Finally, with yesterday’s vote the raging debate that seems to be continuing for ages, has been concluded.

After lengthy Republicans were convinced by The Biden administration and the law increasing the debt limit was passed by majority of 314 votes against 117.

In a written statement after the vote, Biden urged the Senate to approve the legislation as soon as possible.

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“Tonight, the House of Representatives took a critical step to avert a first default and preserve our nation’s hard-won and historic economic recovery.

I urge the Senate to pass the bill as soon as possible so that I can sign it and our country can continue to build the strongest economy in the world.”

Asian markets opened with mostly buyers following the approval of the law in the House of Representatives. US futures traded higher with small premiums while Bitcoin fell as low as $26600.

Despite the pullback in Bitcoin, some major altcoins (LTC) showed positive divergence.

In her last letter to the parliament, Janet Yellen stated that if the law is not approved by June 5, the Treasury will default. The next stop of the law will be the Senate. If the Senate approves the law, it will enter into force with Biden’s signature and suspend the US Treasury’s debt limits until January 1, 2025.