The Implications of a US Government Shutdown on Bitcoin: How Would the Cryptocurrency Be Affected?

The State of the American Economy Examined by Analyst Marcel Pechman

In the latest episode of Macro Markets, analyst Marcel Pechman provides insights into the current state of the American economy. He focuses on the disparity between people’s perception of the economy and the objective data, as highlighted in a headline from Barron’s.

Pechman agrees with Barron’s assessment that a significant portion of the United States population lacks sufficient savings for retirement. This could potentially result in longer working years for many individuals. Notably, household wealth in the U.S. has recently reached unprecedented levels, largely driven by surges in equities and real estate assets.

Rising Concerns about Increasing Prices

Pechman addresses the rising concerns among U.S. consumers regarding increasing prices, specifically focusing on the cost of fueling their vehicles with gasoline. He attributes this to the recent surge in U.S. crude futures, which has been influenced by Saudi Arabia’s decision to extend output curbs.

Challenges for President Joe Biden

The analyst predicts challenges for President Joe Biden in managing inflation and the potential impact of Federal Reserve interest rate hikes on real estate and the S&P 500. Pechman also explores the implications for Bitcoin (BTC), suggesting that if inflation outpaces income growth, it could exert downward pressure on the cryptocurrency.

The U.S. Budget Issue and Potential Government Shutdown

Pechman delves into the U.S. budget issue and raises concerns about the possibility of a government shutdown due to disagreements in Congress. In his critical analysis, Pechman questions the allocation of disaster funds to cover war expenses, drawing attention to the priorities of the Biden administration. He emphasizes the potential consequences and legality of such maneuvers.

Pechman concludes by suggesting that a U.S. government shutdown could potentially trigger a bull run in Bitcoin. He advises keeping a close watch on this situation as it may lead to a cryptocurrency rally in early October.

For more information and analysis, watch the latest episode of Macro Markets on the Cointelegraph Markets & Research YouTube channel.

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J-S Tremblay
About the author - J-S Tremblay

I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...

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