According to BlockBeats, on December 30, CoinDesk analyst James Van Straten stated that U.S. Treasury Secretary Janet Yellen wrote to congressional leaders indicating that the Treasury expects the U.S. to reach the debt ceiling as early as between January 14 and 23, 2025, and may need to take 'extraordinary measures' to avoid federal government defaulting on its debt.
Raising the debt ceiling has historically been a negative signal for Bitcoin; in the past five such instances, Bitcoin experienced declines or poor performance in the following days.
Since the cycle low in November 2022, Bitcoin has followed the trend of the previous two cycles.
The cycles from 2018-2022 and 2015-2018 both saw significant pullbacks at this point in the respective cycles. Trump's inauguration on January 20 may serve as a bottom signal for Bitcoin.
