- The debt ceiling agreement passed the House of Representatives on Thursday (Turkey time) with a vote of 314-117, despite opposition from a few lawmakers.
- The agreement needs to pass the Senate by Monday, June 5, but may face challenges from both Republicans and Democrats.
- The price of Bitcoin was not directly affected by the successful debt ceiling vote in the US House of Representatives.
The debt ceiling agreement passed the House of Representatives on Thursday with a vote of 314-117. Now, it needs Senate approval before it can go to Joe Biden’s desk. When will the Senate vote?
Debt Ceiling Agreement Moves to Next Stage
The debt ceiling agreement passed the House of Representatives on Thursday (Turkey time) with a vote of 314-117, despite opposition from a few lawmakers. Now, it needs Senate approval before it can go to Joe Biden’s desk.
#ABD KONGRESİ, BORÇ TAVANI YASA TASARISINI OY BİRLİĞİYLE MECLİSTE ONAYLADI.
— CO NEWS (@coinotag) June 1, 2023
The agreement needs to pass the Senate by Monday, June 5, but may face challenges from both Republicans and Democrats. Lawmakers are racing to solve the $31.4 trillion (£25 trillion) debt problem that underpins the global financial system of the US.
A failure to pay debts would mean the government cannot borrow any more money or pay all of its bills. It also poses a threat of causing chaos overseas by affecting prices and mortgage rates in other countries.
Democratic and Republican leaders have said they want the agreement to pass the Senate. Democratic Leader Chuck Schumer said on Wednesday:
“I cannot emphasize enough that we have no margin for error.”
Senate Republican leader Mitch McConnell said in a statement to reporters that he would be “proud to support it without delay.” However, some Republicans threatened to delay the assessment and could demand changes to the agreement if Senate leaders allow it.
If any changes are approved, the agreement will have to go back to the House of Representatives for another vote – which will go beyond June 5.
The Senate is narrowly divided – with 51 of the 100 seats held by Democrats – and 60 votes are needed for the bill, so a combination of Democratic and Republican votes will be needed.
On Wednesday evening, 165 Democrats joined 149 Republicans to approve the 99-page bill to raise the debt ceiling by a simple majority.
In a situation where Republicans control the lower house of Congress and Democrats dominate the Senate and the White House, it has been proven difficult to reach an agreement for weeks until Biden and House Speaker Kevin McCarthy signed a compromise over the weekend.
Thursday is expected to be the day when the US Senate votes on the debt ceiling agreement. The agreement, which was voted on and approved by a majority vote in the House of Representatives on Wednesday, now needs approval from the US Senate. According to sources, the vote is expected to take place today.
What is the Current Situation with Bitcoin?
The price of Bitcoin was not directly affected by the successful debt ceiling vote in the US House of Representatives, but later exhibited sharp price drops and fell below $27,000.
Bitcoin fell as low as $26,605 during the day. Currently, BTC is trading at $26,990 with a slight recovery. Although the price has recovered, BTC is still in the red on a daily basis and has lost -0.86%.
While investors in the cryptocurrency market are waiting for the US debt ceiling crisis to be resolved as soon as possible, the temporary agreement sent the price above $28,000 for a while over the weekend. However, the price later fell and first fell below $27,500 and then below $27,000.
