How a US Government Shutdown Could Affect Bitcoin

Examining the American Economy

On the latest episode of Macro Markets, analyst Marcel Pechman examined the current state of the American economy. Referencing a headline from Barron’s, he highlighted the disparity between people’s perception of the economy and the objective data.

Pechman delved into the concept of excess savings, agreeing with Barron’s that a significant portion of the U.S. population lacks sufficient savings for retirement, potentially necessitating longer working years. He noted that household wealth in the U.S. has reached new heights, primarily due to surges in equities and real estate assets.

Turning his attention to rising concerns among U.S. consumers about increasing prices, particularly the cost of filling up their vehicles with gasoline, Pechman connected this to the recent surge in U.S. crude futures, influenced by Saudi Arabia’s decision to extend output curbs.

Pechman foresaw challenges for President Joe Biden, especially in managing inflation and the impact of Federal Reserve interest rate hikes on real estate and the S&P 500. He then addressed the implications for Bitcoin (BTC), suggesting that if inflation outpaces income growth, it could exert downward pressure on the cryptocurrency.

Pechman’s Analysis of U.S. Budget Issue

In his latest episode of Macro Markets, available exclusively on the Cointelegraph Markets & Research YouTube channel, Pechman investigates the potential for a U.S. government shutdown due to disagreements in Congress. His critical analysis questions the legality of utilizing disaster funds to cover war expenses, and emphasizes the consequences of such maneuvers. Pechman suggests that a government shutdown could trigger a bull run in Bitcoin, advising viewers to keep an eye on this potential trigger for a cryptocurrency rally in early October.

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