The cryptocurrency market is up more than 2% today after a relatively lackluster performance in May. Bitcoin topped the $28,000 mark for the first time since the beginning of the month, while Ether, the second-largest cryptocurrency, soared past $1,900.
This surge in crypto prices may be attributed to the United States debt ceiling agreement reached by President Biden and the House leadership. The deal, which still needs to pass through Congress by Wednesday, will suspend the federal government’s $31.4 trillion debt ceiling. If Congress fails to pass the agreement, the US would be at risk of defaulting on its debt, which could lead to a recession and massive losses in the financial markets.
The news of this agreement sparked optimism among investors, leading to a rally in cryptocurrency prices. Bitcoin rose to $27,953 per coin, and Ether climbed to $1,904.
Overall, the total cryptocurrency market cap has reached $1.16 trillion for the first time this month.