The U.S. is set to hit its debt ceiling between January 14 and January 23, according to Treasury Secretary Janet Yellen. This event has historically been a bearish signal for Bitcoin, which has dropped or underperformed in the days following the past five debt ceiling raises. On the day Yellen’s letter was publicized, Bitcoin fell by as much as 4% from its intraday high. The U.S. national debt now stands at over $36.2 trillion, with Congress having raised the debt limit 103 times since 1939. This December, Bitcoin has been down 3%, marking its first negative month since August. The political and economic uncertainty is further compounded by President-elect Donald Trump’s inauguration on January 20, which falls within the dates Yellen highlighted. Historically, Bitcoin has shown a pattern of significant drawdowns at this point in its cycle, similar to the previous two cycles where it saw a 500% return before a downturn.
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