The Bitcoin (BTC-USD) chart revealed two bullish signs after US Treasury Secretary Janet Yellen said the US may be unable to pay their bills by early June.
Bitcoin traded flat at $27 578 (PS21 854) on Tuesday.
According to data, Bitcoin reserves on all cryptocurrency Exchanges have decreased in the last two days.
This could mean that investors are transferring their digital assets from exchanges to cold storage in the hope of a price increase.
The CoinDesk Bitcoin trend Indicator (BTI) also shows a bullish movement in the price. This is because long-term bitcoin holders are continuing to increase their holdings.
Since 31 March, 30-day changes in long-term supplies, defined as coins that have been held for at least 155 days, are trending upwards, signaling bullish sentiment and a dormant stock.
BTI indicates that bitcoin prices are up 68% in the past year.
Janet Yellen, US Treasury Secretary, said the failure to raise US debt ceiling would have grave consequences for the nation and global economy.
Yellen said ABC News Sunday, that if the US Federal Government fails to come to an agreement about raising its borrowing limits, it may face a lack of funds as early as June.
In this case, the government might struggle to pay for salaries, welfare and other obligations.
As I stated this morning, Biden presented a detailed Budget that cuts deficits by 3 trillion dollars over ten year while investing in the strength and stability of the American Economy. We must raise the debt limit to prevent economic catastrophe. pic.twitter.com/7z2WCxoJLg
– Secretary Janet Yellen May 7, 2020
Yellen stated: ‘If debt ceilings are not raised by the end of June, the Treasury will be in a position to find themselves unable to pay the due bills on that date. This would be the first instance in American history that we have failed to make payments due.
We would not be able to pay all our obligations if we defaulted on our interest payments, or social security payments. It is generally agreed that this would lead to financial and economic chaos.
She added, ‘It is the job of Congress to do this, and if they don’t do it, then we will face an economic and financial disaster that will be our own fault.