U.S. Treasury Secretary Janet Yellen has revised her estimation concerning the date when the U.S. may potentially default on its debt. Initially, she warned that the government might default as early as June 1 . However, her recent revision suggests that the U.S. government could exhaust its funds by June 5.
This impending financial crisis, if unresolved, could have a significant impact on the financial markets, including the cryptocurrency sector. It is seen as a potential black swan event that could have an outsized impact on Bitcoin, Ethereum, and other cryptocurrencies.
The debt-ceiling impasse is a significant test for Secretary Yellen and her team of experienced officials. If lawmakers remain deadlocked and the debt ceiling isn’t suspended or raised, the U.S. government may run out of funds, leading to a possible default. This emphasizes the urgency and significance of managing the nation’s debt effectively to ensure the financial stability of the U.S. government.