Crypto Crash Imminent? US Risks Running Out Of Cash Amid Banking Crisis

Crypto Crash News: Janet Yellen, US. Secretary of the Treasury on Monday flagged off a warning that the nation might run out of money by June 1. This warning comes in when the US. is facing a major banking crisis. However, with the major financial market, the Crypto market also registered a decline.

Also Read: FOMC, ECB: Bitcoin To Face Tough Week Ahead; Here’s Why

US Running Out Of Cash?

As per reports, Janet Yellen in a letter warned the congressional leader about the growing concerns of a nearing debt ceiling crisis. She mentioned that after evaluating recent federal Tax receipts, calculated estimates suggest that the authority will be unable to continue the government’s obligations. The expected date is stated as June 1, 2023.

However, she asked the lawmakers to raise the debt limit before the expected deadline. The June 1 date is slightly earlier than what experts suggested. As per reports, Goldman Sachs’ recent estimate hinted the deadline is somewhere around late July.

The legal limit on federal borrowing has become an unending issue in the DC. Reports suggest that a clash between Republicans and the Biden administration has signaled that the government is heading toward default. Read More Crypto Crash News Here…

Also Read: XRP Lawsuit: Is Settlement Still In Scenario As Summary Judgment Closes In?

It should be noted that this development emerges at a time when the U.S. is witnessing the worst banking crisis. However, the market is also looking forward to the crucial FOMC meeting.

The global digital asset market registered a decline for the straight 3rd day due to increased selling pressure. This also directs the mood of investors toward the market with unclear regulations and missed expectations.

The cumulative crypto market cap is down by more than 1.21% over the last day to stand at $1.17 trillion. Its 24 hour trading volume is also down by 13% to stand at $34.6 billion.

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