The US debt ceiling was raised to $41.1 trillion in July 2025 under Public Law 119-21. Analysts at the Bipartisan Policy Center project this ceiling could be approached or breached between late winter and mid-summer 2027, uncomfortably close to the November 2026 midterm elections. Debt ceiling standoffs create a risk-off environment where investors pull back from volatile assets, but Bitcoin and Ether showed resilience during the 2023 standoff and recovered swiftly after Congress reached a deal. Grayscale argues that rising US public debt could serve as a sustained structural tailwind for Bitcoin and Ether, as concerns about fiat debasement make assets with constrained supply more attractive.
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