{"id":124914,"date":"2025-03-12T13:15:34","date_gmt":"2025-03-12T13:15:34","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=124914"},"modified":"2025-03-12T13:15:34","modified_gmt":"2025-03-12T13:15:34","slug":"bitcoins-next-catalyst-end-of-36t-us-debt-ceiling-suspension","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=124914","title":{"rendered":"Bitcoin\u2019s next catalyst: End of $36T US debt ceiling suspension"},"content":{"rendered":"

Source: Cointelegraph.com NewsBitcoin\u2019s next significant price catalyst may arrive Friday as the US debt suspension period comes to an end, potentially injecting fresh liquidity into markets and driving a price rebound.
\nThe US Treasury hit its $36 trillion debt ceiling a day after President Donald Trump\u2019s inauguration on Jan. 20. A \u201cdebt issuance suspension period\u201d began then and was set to last until March 14, according to a letter published on Jan. 17.
\nBitcoin (BTC) has dropped 22% during the two-month debt suspension plan, from over $106,000 on Jan. 21 to $82,535 at the time of writing on March 12, TradingView data shows.
\nBTC\/USD, 1-day chart since Debt suspension plan. Source: Cointelegraph\/TradingView\u00a0A resumption of government spending may bring a liquidity boost to catalyze Bitcoin\u2019s next rally, according to Ryan Lee, chief analyst at Bitget Research.
\n\u201cWith in-hand cash, the demand for financial assets such as stocks and crypto can increase, and there may be a relief from ongoing volatility,\u201d the analyst told Cointelegraph. \u201cIn such periods, we can expect a boost in the overall momentum, although many other factors are important to note.\u201d
\nBeyond global tariff uncertainty, \u201cconcerns such as inflation, interest rates and geopolitical issues remain unresolved,\u201d Lee added.
\nConsidering that the debt suspension will end just two weeks after the White House Crypto Summit, a portion of the new liquidity may flow into cryptocurrencies, according to Aleksei Ponomarev, co-founder and CEO of crypto index investing firm J\u2019JO.
\n\u201cSurges in liquidity have typically benefited Bitcoin and risk assets, and the end of the US debt suspension will be no different,\u201d he told Cointelegraph, adding:
\n\u201cWhile the liquidity surge will undoubtedly drive market price movement, it is limited to short-term impact. The long-term trajectory of Bitcoin is, and remains, tied to institutional investments, ETF growth and regulatory clarity and implementation.\u201d
\nGMI Total Liquidity Index, Bitcoin (RHS). Source: Raoul PalBitcoin\u2019s right-hand side (RHS), which marks the lowest bid price for which someone is willing to sell the currency, may still face a potential correction to near $70,000 until the end of the debt suspension period on Friday, based on its correlation with the global liquidity index.
\nStill, the growing money supply could push Bitcoin price above $132,000 before the end of 2025, according to estimates from Jamie Coutts, chief crypto analyst at Real Vision.
\nBTC projection to $132,000 on M2 money supply growth. Source: Jamie CouttsRelated: Bitcoin may benefit from US stablecoin dominance push
\nBitcoin price still limited by global trade war concerns
\nWhile more global liquidity is an optimistic sign for Bitcoin, the world\u2019s first cryptocurrency remains limited by global trade tariff concerns, according to James Wo, the founder and CEO of venture capital firm DFG:
\n\u201cWhile some may argue that retaliatory measures from tariff-imposed countries were already priced in, tariffs have a delayed economic impact beyond their initial announcement.\u201d
\n\u201cHigher import costs and reduced corporate margins are likely to push inflation higher, forcing central banks to keep interest rates elevated for longer under a restrictive monetary policy,\u201d he added.
\nThis may also tighten liquidity conditions, making risk assets such as Bitcoin \u201cless attractive in the short to medium term,\u201d Wo said.
\nRelated: Bitcoin reserve backlash signals unrealistic industry expectations
\nThe European Union introduced retaliatory tariffs on March 12, threatening a Bitcoin correction below $75,000 in the short term. This may occur temporarily due to Europe accounting for over $1.5 trillion of annual US exports.
\nDespite the short-term correction concerns, most analysts remained optimistic about Bitcoin\u2019s price trajectory for late 2025, with price predictions ranging from $160,000 to above $180,000.
\nMagazine: SCB tips $500K BTC, SEC delays Ether ETF options, and more: Hodler\u2019s Digest, Feb. 23 \u2013 March 1Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsBitcoin\u2019s next significant price catalyst may arrive Friday as the US debt suspension period comes to an end, potentially injecting fresh liquidity into markets and driving a price… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/124914"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=124914"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/124914\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=124914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=124914"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=124914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}