Crypto Market News: Janet Yellen, the US Treasury, on Wednesday acknowledged there was some stress in the financial markets, amid uncertainty around the impending debt ceiling deal deadline. Yellen reiterated that the US government was highly likely to run out of sufficient cash in early June 2023. Meanwhile, top Republican Kevin McCarthy said earlier on Wednesday that there was no progress in the talks since his meeting with US President Joe Biden. Any indication of failure to reach the deal before the June 1 deadline could potentially lead to financial markets catastrophe, similar to that of the July 2011 market crash.

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In this context, McCarthy is set to speak in a press conference on Wednesday. Overall, a word of commitment about efforts to avoid the default is the need of the hour, not just for the stock markets but also the crypto market.

Bitcoin Price Lacks Support Ahead Of US Debt Ceiling Deadline

The US Treasury Secretary said it would be hard to predict the exact timeline for when the default will kick in if a deal is not met. Earlier, Yellen warned that in case of a US debt default, there could be massive losses in stock markets, to the tune of around 45%.

“Even in the run up to possible default, there will likely be substantial financial market distress. We are committed to not having missed payments, (I am) not involved in planning for what happens if there is a default.”

Meanwhile, not all is favorable for a Bitcoin price jump, despite chances of a debt default. Going by the recent US regional banking crisis experience, the crypto market could see some positive momentum. However, the top cryptocurrency shows signs of probability of a Bitcoin price correction between the $23,200 and $24,000 range, according to Ali Charts.

“Notice that #Bitcoin appears to be losing all major areas of support. This increases the probability of a correction to the next important demand wall between $23,200 and $24,000, where 850,000 addresses had previously purchased 340,000 $BTC.”

Also Read: Bitcoin (BTC) Price Breaking Under Crucial Support Levels, $23,000 Coming?

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Reach out to him at [email protected].

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.