The agreement on the debt ceiling between the president, Joe Biden, and the speaker of the House of Representatives, Kevin McCarthy, has boosted risk appetite in global markets. But the agreement still needs to be quickly approved in Congress to avoid a US default. A recent uptick in Treasury yields and bets for further monetary tightening in the US are other potential headwinds.
Bitcoin is on a five-day rally, its best stretch since March, partly easing a difficult quarter due to a lack of liquidity and a US crackdown.
Since the November 2022 lows, bitcoin has posted five-day winning streaks a dozen times, rising an average of nearly 19% over the following 20 days.
Crypto markets have partially rebounded in 2023 from a slump last year that triggered crashes like the one at crypto exchange FTX. But they remain well below all-time highs, including bitcoin’s all-time peak of nearly $69,000 in 2021.