Bitcoin is showing bullish signals
Bitcoin (BTC-USD) charts revealed two bullish signals after US Treasury Secretary Janet Yellen warned that the US could be “out of cash and unable to pay its bills by early June”.
Bitcoin traded flat at $27,578 (£21,854) on Tuesday.
Over the past two days, bitcoin reserves across all cryptocurrency exchanges have fallen, according to data from CryptoQuant.
This may indicate that investors are taking their digital assets from exchanges and transferring them to cold storage, to keep speculation that prices will rise.
Read more: Crypto live prices
Another bullish price action indicator comes from the CoinDesk Bitcoin Trend Indicator (BTI) which shows that long-term holders continue to increase their bitcoin holdings.
Since March 31, the 30-day change in long-term supply, defined as coins held for 155 days or more, has trended higher, indicating bullish sentiment and dormant supply.
BTI shows that bitcoin is in an upward trend, with prices up 68% so far this year.
It comes as US Treasury Secretary Janet Yellen said that failure to raise the US debt ceiling could have serious consequences for the national and global economy.
Yellen told ABC News on Sunday that if the US federal government fails to reach an agreement to raise the borrowing limit, it could face a shortage of funds in early June.
Consequently, the government may struggle to pay for salaries, welfare and other obligations.
Yellen said: “If the debt ceiling is not raised by June, the Treasury will be in a position where it will not be able to pay all the bills that are due by that day, and this will be the first time in the history of the United States that we would fail to make payments due.
Read more: Belgium’s digital minister says EU will ‘bring order to crypto’ and create its own blockchain | Crypto Mile
“Whether that’s defaulting on interest payments or payments for Social Security recipients, we simply wouldn’t have enough cash to meet all of our obligations, so it’s widely agreed that financial and economic chaos will then ensue.”
“It is the job of Congress to do this, and if they fail to do that, we will have an economic and financial disaster that will be of our own making,” she added.
See: Belgium’s digital minister: EU plans to ‘bring order to crypto’ and create its own blockchain | Crypto Mile
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