Congress Crypto: What a US Government Shutdown Would Do to Bitcoin
What a US government shutdown would do to Bitcoin

Examining the American Economy

On the latest episode of Macro Markets, analyst Marcel Pechman looked at the current state of the American economy. He referenced a headline from Barron’s to illustrate the disparity between people’s perception and the objective data.

Pechman delved into the concept of excess savings, agreeing with Barron’s that a significant portion of the United States population lacks adequate savings for retirement, potentially forcing people to work longer. He noted that household wealth in the U.S. has hit record highs, mainly due to increases in equities and real estate assets.

Turning his attention to rising concerns among U.S. consumers about increasing prices, particularly the cost of gasoline, Pechman linked this to the recent surge in U.S. crude futures, influenced by Saudi Arabia’s decision to extend output curbs.

Pechman predicted challenges for President Joe Biden, particularly in managing inflation and the effects of Federal Reserve interest rate hikes on real estate and the S&P 500. He then discussed the implications for Bitcoin (BTC), suggesting that if inflation outpaces income growth, it could put downward pressure on the cryptocurrency.

Celsius Crypto, Stock and the US Budget Issue

Analyzing the US budget issue, Pechman examines the possibility of a government shutdown due to disagreements in Congress. He draws attention to the Biden administration’s priorities and the potential consequences and legality of using disaster funds to cover war expenses.

In his critical analysis, Pechman suggests that a US government shutdown could trigger a bull run in Bitcoin, and advises keeping an eye out for this potential crypto rally in early October. He also recommends checking out the latest episode of Macro Markets, available on the Cointelegraph Markets & Research YouTube channel.

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