Why is the crypto market up today? Imminent debt ceiling vote boosts the market

Key takeaways

• The cryptocurrency market is up by more than 2% today after underperforming for the best part of May.

• Bitcoin topped the $28k mark for the first time this month.

• The rally comes as President Biden and the House leadership reached an agreement on the debt ceiling.

Crypto Market Cap Reaches $1.16 Trillion

The cryptocurrency market performed well over the weekend, with most coins and tokens trading in the green zone.

For the first time this month, the total cryptocurrency market cap reached the $1.16 trillion threshold for the first time this month. 

The rally comes following an agreementbetween President Biden and the House leadership on United States’ debt ceiling. President Biden and congressional Republican Kevin McCarthy reached an agreement to suspend the federal government’s $31.4 trillion debt ceiling over the weekend. 

However, the deal still has to pass through Congress later this week. The vote is expected to take place on Wednesday before the United States runs out of money to pay its debts in early June.

The deal sparked optimism amongst investors that the United States would not default on its debt. If the US default on its debt, a recession would likely follow, and this could see the financial markets experience massive losses. 

Bitcoin Rallies To $28k 

Bitcoin, the world’s leading cryptocurrency by market cap, touched the $28k level for the first time in three weeks. Bitcoin started May trading above $29k per coin but plunged to a low of $26,008 last week. At press time, the price of Bitcoinstands at $27,953 per coin. 

The leading cryptocurrency is now slowly recovering, thanks to the positive news from the United States. 

Ether, the second-largest cryptocurrency in the world, also moved past the $1,900 level for the first time in weeks, adding more than 3% to its value in the last 24 hours. At press time, the price of Etherstands at $1,904.