Bitcoin’s next significant price catalyst may arrive this Friday as the United States debt suspension period comes to an end, potentially injecting fresh liquidity into markets and driving a price rebound.
The US Treasury hit its $36 trillion debt ceiling a day after President-elect Donald Trump’s inauguration on Jan. 20. Treasury Secretary Janet Yellen announced a “debt issuance suspension period” beginning Jan. 21, which is set to last until March 14, according to a letter published on Jan. 17.
Bitcoin (BTC) has dropped 22% during the two-month debt suspension plan, from over $106,000 on Jan. 21 to $82,535 at the time of writing on March 12, TradingView data shows.
BTC/USD, 1-day chart since Debt suspension plan. Source: Cointelegraph/TradingView
The resumption of government spending will bring a liquidity boost that may catalyze Bitcoin’s next rally,