Bitcoin’s next significant price catalyst may arrive Friday as the US 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 Donald Trump’s inauguration on Jan. 20. A “debt issuance suspension period” began then and was 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
A resumption of government spending may bring a liquidity boost to catalyze Bitcoin’s next rally, according to Ryan Lee, chief analyst at Bitget