US Congress Ups Debt Ceiling By $2.5T, What Does It Mean For BTC?

US Congress ups debt ceiling level by $2.5T after the recent voting which approved the increase of the national debt but now, crypto experts weigh in on how this can impact Bitcoin. Let’s find out more in today’s Bitcoin news.

The US Government will likely postpone its federal default for a year after Congress finally approved a debt limit increase of $2.5 trillion. With the potentially growing debt ceiling above $30 trillion and the fast rate of the US dollar printing that only enhances inflation, what will happen to Bitcoin?

BREAKING: Senate OKs $2.5trillion dollar advertisement for bitcoin

— Tyler Winklevoss (@tyler) December 14, 2021

The US Congress ups debt ceiling from October’s $480 billion that bringing the borrowing limit to $28.9 trillion. The Republicans tried to oppose the bill’s acceptance because of the Democrat’s plans to enhance the climate spendings, but the legislation was quickly signed by President Joe Biden and came to effect instantly. It was known at the time that the limit increase won’t be any good for the country in the long run as the next hearing was expected to happen in December. With December being here, the scenario repeated with Republicans trying to fight the bill but the Democrats emerged stronger.

The bill passed Congress and it is now in the hands of President Biden who is expected to sign it soon. If he signs the bill, he will increase the federal government’s debt limit by $2.5 trillion to $31.4 trillion and it will also delay the threat of a federal default until early 2023. Speaker Nancy Pelosi praised the bill’s acceptance and said the full faith and credit of the United States Should not be questioned and the health of the economy should not be threatened.

On the contrary, Republican Representative Jodey Arrington was quite disappointed noting that the country’s debt level will be at its highest level since the second world war and we are not in a war even, she noted. With the US printing huge amounts of its national currency in the past years, the consequences are more than evident. The US inflation rates grew by larger percentages in the past six months which led to a 6.8% surge in November which is the highest level since the last 40 years.  On the other hand, we have Bitcoin with a pre-programmed inflation rate that can decline every four years. It doesn’t have a central authority behind it which means that BTC has a limited supply that can’t be increased by a signature of a President.

All of these features attract prominent investors and names like Thoma Bravo, Anthony Scaramucci, Stan Druckenmiller and Paul Tudor Jones poured money into BTC.