ChainCatcher message, 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 its debt ceiling between January 14 and 23, 2025, and may need to take "extraordinary measures" to avoid defaulting on federal debt.
Raising the debt ceiling has historically been a negative signal for Bitcoin; in the last five such instances, Bitcoin experienced declines or poor performance in the following days.
Since the cycle low in November 2022, Bitcoin has followed a trajectory consistent with the previous two cycles.
The cycles of 2018-2022 and 2015-2018 both experienced significant pullbacks at this point in their respective cycles. Trump's inauguration on January 20 may signal the bottom for Bitcoin.
