The price of Bitcoin (BTC) has moved back above $28,000 U.S on news that lawmakers have reached agreement to raise the U.S. debt limit and avoid a potentially devastating default.
Bitcoin’s rally is leading all cryptocurrencies higher, with Ethereum (ETH) rising above $1,900 U.S.
The gains come after an agreement was reached between U.S. President Joe Biden and Republican House Speaker Kevin McCarthy to increase the country’s debt ceiling.
Bitcoin’s price rose as much as 4% to $28,195 U.S., the first time it has been above $28,000 U.S. since May 10 of this year.
Ethereum’s price increased 3.50% to $1,916 U.S., its highest level in three weeks.
If the new debt ceiling deal is ratified, the agreement will run until January 1, 2025.
Democrats and Republicans must now convince lawmakers in Congress to pass the deal by a June 5 deadline, at which point the U.S. runs out of money and could default on its debt obligations.
Other cryptocurrencies are also trading higher on news of the debt limit deal. The total market capitalization of cryptocurrencies rose 3% to $1.17 trillion U.S.
The total trading volume of cryptocurrencies increased 57% to $31.73 billion U.S.
While U.S. markets are closed on May 29 for Memorial Day, cryptocurrencies such as Bitcoin trade around the clock, 24 hours a day, 365 days a year.
