CRYPTOHELL
US Debt Default and Crypto Market: Implications and MVRV Ratio Analysis
Many are wondering if the $15k level is the bottom for Bitcoin or if there is still a potential bearish scenario that could push it down to the $12k range. Referring to the MVRV Ratio as a market indicator to indicate the bottom price, if the ratio is below 1, it suggests that Bitcoin has found its bottom price. However, it is still possible for the price to move bearishly to even lower levels. But if we calculate based on technical analysis, then if the price 🪙 experiences a drastic decline, it can be determined that the potential correction will not exceed the range of $17k - $18k. Furthermore, in the coming days, we will hear the determination of whether the United States will be able to avoid a debt default. What would happen if America defaults? It would lead to a financial market meltdown and potentially trigger an international financial crisis. It could also impact the potential loss of millions of jobs, a surge in loan rates and unemployment, and the potential collapse of the stock market. The default could potentially devastate the market with at least $24 trillion in US government Treasury bond debt. Now, how would this affect the crypto market? It is important to note that historically, the United States has never experienced a debt default, so it is difficult to predict the exact impact. However, if the Federal Reserve (The Fed) raises interest rates to combat inflation, it would have a negative impact on the crypto market. So, the resilience of the crypto market is currently being severely tested. Can cryptocurrencies, especially Bitcoin, truly be considered as a legal tender and investment tool? Personally, I see Bitcoin becoming a daily staple for global transactions in the next 5-10 years. So, what are your thoughts? Based on your individual analysis, what do you think will be the information provided by America on June 1st, and how will the crypto market react? Please share your thoughts in the comment section.