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- The price of Bitcoin
moved upwards with news from the US.
- The US House of Representatives approved an increase in the debt limit of $1.5 trillion.
The approval of the debt ceiling increase by the US House of Representatives has affected the price of Bitcoin. But what does this mean?
The US House of Representatives Approves Debt Limit Increase!
Bitcoin had a turbulent day, rising to $30,000 during the day. Then, with the allegations of Mt Gox and the US transferring Bitcoin, there were sharp drops in the BTC price, and the price dropped to around $27,000. With the denial of these allegations, Bitcoin held above $28,000 again.
The information from the US House of Representatives had a positive impact on the market. According to the information, the US has approved an increase in the debt limit of $1.5 trillion.
#JUSTIN : US House passes bill to increase the debt limit by $1.5 trillion.
— CoinOtag EN (@coinotagen) April 26, 2023
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With this news, the price of Bitcoin moved upwards and reached $28,739. But what does an increase in the debt limit mean?
The debt ceiling, or the maximum amount of money the US government can borrow legally, is a limit set by law. The Treasury borrows money by issuing bonds, and the debt ceiling limits the amount of bonds that can be issued at the same time.
When the government reaches the debt ceiling, it cannot borrow more money without congressional approval. This can create problems when the government needs to borrow money to pay for things like salaries for public employees or payments to contractors.
In this context, “the US House of Representatives approving a bill to increase the debt ceiling by $1.5 trillion” means that a bill allowing the US government to borrow an additional $1.5 trillion has been approved by the House of Representatives. This means that the government can pay its bills and avoid defaulting on its debt obligations.
The increase in the debt ceiling in the US is a controversial issue that has sparked some political debates. Some politicians argue that maintaining fiscal discipline and reducing government spending is important, while others argue that not increasing the debt ceiling could have serious economic consequences. The bill needs to pass the Senate to become law.