Bitcoin and other cryptocurrencies rallied on Monday after President Joe Biden and House Speaker Kevin McCarthy reached an in-principle agreement to raise the country’s debt ceiling.
The move has boosted investors’ appetite for risk assets, with cryptocurrencies seen as a potential hedge against inflation and other economic risks.
Bitcoin rose 3.98% over the last 24 hours to US$28,195 at 9:30 a.m. in Hong Kong. It recorded a weekly gain of 5.73%, according to data from CoinMarketCap. The world’s largest cryptocurrency is trading above the US$28,000 resistance level for the first time since May 10.
Ether also jumped 3.48% in the past 24 hours to US$1,916, moving up 6.53% over the past seven days. It was trading above the US$1,900 mark for the first time in three weeks.
Other cryptocurrencies also saw gains, with Solana up 5.6%, Cardano up 4.7%, and Binance Coin up 4.2%.
The rally in cryptocurrencies comes as investors are looking for assets that can provide protection against inflation and other economic risks.
Cryptocurrencies are often seen as a hedge against inflation because they are not subject to government control or manipulation.
The debt ceiling deal is also seen as a positive development for the cryptocurrency industry. The deal removes a major uncertainty that had been hanging over the market and could lead to increased institutional investment in cryptocurrencies.