Bitcoin and Crypto Markets Rise on Inflation Data As Countdown to US Debt Default Looms

Bitcoin (BTC) and the crypto markets are on the rise after the latest Consumer Price Index (CPI) reveals cooling inflation.

New data from the U.S. Bureau of Labor Statistics, the CPI – which measures the changes in the prices of goods and services – shows inflation dipped to 4.9% in April, down from 5% in March.

News of the cooling inflation has so far turned crypto green, and sent Bitcoin on a sharp 3% rise from its 24-hour low of $27,434 up to $28,251 after days of continuous downward action.

The inflation data comes as a US debt default looms and lawmakers scramble to address the June 1st deadline.

Currently, President Biden and House of Representatives Speaker Kevin McCarthy are in a deadlock over raising the US debt ceiling, which sits at $31.4 trillion, according to a new report by Reuters.

Both sides are in talks to avoid defaulting. However, McCarthy says that he “didn’t see any new movement” while Biden said that political posturing on the matter should ensue for a while.

Previously, U.S. Treasury Secretary Janet Yellen strongly urged Congress to raise the debt limit as she says failing to do so would cause the nation to fall into a period of “economic calamity.”

“And whether it’s defaulting on interest payments that are due on the debt or payments due for Social Security recipients or to Medicare providers – we would simply not have enough cash to meet all of our obligations. And it’s widely agreed that financial and economic chaos would ensue.”

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