The possibility of the United States experiencing its first-ever debt default could have a significant effect on the price of Bitcoin, Ethereum, and other cryptocurrencies. A decline in the standard of government-backed debt would cause short-term pain for risk assets like stocks and cryptocurrencies.
In the event of a U.S. default, Bitcoin and Ethereum may react differently, with Bitcoin likely to rebound alongside gold after a brief decline and Ethereum likely to stay in the red. Ethereum has less potential for growth than Bitcoin in the event that the government is unable to pay its debts.If a default occurs, Ethereum will likely perform worse than Bitcoin, but Bitcoin’s disproportionate gains following bank failures point to increased volatility. Grant is confident that lawmakers will come to a consensus, but the more important question is whether incidents like this happen more frequently.
