According to a report by COINOTAG News on December 30th, CoinDesk analyst James Van Straten highlighted U.S. Treasury Secretary Janet Yellen’s recent correspondence with congressional leaders. In her letter, she indicated that the U.S. may hit its debt ceiling between January 14th and 23rd, 2025, necessitating potential extraordinary measures to avert a federal government default. Historically, increases in the debt ceiling have often resulted in negative market responses for Bitcoin, as evidenced in the last five occurrences where the cryptocurrency demonstrated either a decline or underperformance shortly thereafter.
Since hitting a cycle low in November 2022, Bitcoin’s price movements have mirrored earlier cycles. The downturns observed in the previous cycles from 2015 to 2018 and 2018 to 2022 also experienced substantial retracements around similar timelines. Notably, the upcoming presidential inauguration of Donald Trump on January 20th could potentially mark a pivotal point for Bitcoin’s performance in the market.