Next week, the U.S. will face an unprecedented event…
Late Sunday, President Joe Biden and House Speaker Kevin McCarthy reached a deal to raise the government’s debt ceiling.
The debt ceiling is the statutory limit on the amount of debt the U.S. Treasury can have outstanding to pay its current obligations. The Treasury Department warned that the government could default on its debt by June 5.
If that happens, it would be the first default in U.S. history.
Now, the deal must go to both chambers of Congress for a vote. And passing it by the deadline isn’t a sure thing.
Both progressives and conservatives in the House have issues with the deal. And there’s a chance it faces a filibuster in the Senate.
If Congress fails to raise the debt ceiling by next week’s deadline, we could see severe economic consequences – including a market crash and millions of job losses.
Long story short: It could get ugly.
So what does that mean for alternative assets like bitcoin?
Longtime readers know I believe bitcoin is an escape hatch from the traditional financial system.
It’s completely decentralized, and there’s no counterparty risk when you hold bitcoin personally. When you self-custody your bitcoin, no one can take it from you.
The important thing to know is that the debt ceiling talks will have no impact on the long-term price trajectory and adoption rate of bitcoin.
Of course, in the unlikely event the talks fail and the U.S. defaults, we’ll see volatility across all markets. There’s no getting around that.
The U.S. is the No. 1 debtor in the world. If it defaults, we’ll have bigger problems than a drop in the price of bitcoin.
If bitcoin drops significantly in price from here – I’m talking $20,000 or below – you want to buy it with both hands (while still respecting your own personal risk-management rules).
That’s because the mainstream press is missing two major catalysts coming to crypto.
One will open the doors of this asset class to trillions of dollars of new capital… And the other will boost crypto adoption to billions of people.
Coincidentally, the first catalyst begins June 1, the same day as the original debt default deadline set by the Treasury Department…
Why June 1 Will Be Bullish for Crypto
There’s an important event happening on June 1 that you’re not hearing about in the financial media.
That’s when the Hong Kong Securities and Futures Commission will allow crypto exchanges in the territory to service retail investors.
China’s financial system has about $19.47 trillion in assets under management.
The website CoinGeek said this new rule “will attract capital, particularly from China, by making Hong Kong a possible home for digital asset exchanges to operate legally.”
Now, crypto is still banned in mainland China. But this new rule is a loophole that allows the Chinese to invest in crypto once again.
The Chinese government will let Hong Kong experiment with new regulations, like the one that’s going into effect June 1. It’s going to watch what happens without having to reopen the mainland to the crypto market.
This is a way for China to dip its toes back into the crypto world without putting the financial stability of the entire country at risk.
Now, nothing happens in Hong Kong without China’s approval. So clearly China wants this to happen.
In my view, China’s government wants to control the Hong Kong exchanges so it can profit from crypto… just like it profits from tech giants like Alibaba, Tencent, and Baidu.
Even if we do see volatility in the U.S. markets, China opening its doors to crypto will offset some of that.
Use This Opportunity to Set Yourself up for the Next Catalyst
Friends, if you’re worried about the June 5 debt default deadline, I can’t blame you.
It could do severe damage to the U.S. economy – the world’s largest. And we’ll likely see volatility across asset classes, including crypto.
But on June 1, financial regulators will open the doors to the second-largest crypto market in the world… a market with almost $20 trillion in investable capital.
This is hugely bullish for bitcoin.
That’s why if we do see a significant pullback in crypto because of a U.S. debt default, it will be a buying opportunity… not a reason to run away.
The last time I saw an opportunistic buy like this was March 10… the very same day Silicon Valley Bank went under. At the time, it was the second-largest bank implosion in U.S. history.
Here’s what I said back then.
These opportunistic sell-offs that we’re seeing, which have nothing to do with the underlying fundamentals, are great buying opportunities… So what I would suggest is to continue dollar-cost averaging. I’ve said before that below $20,000, you can put opportunistic capital to work.
Later that day bitcoin hit $20,000. Four days later it was trading at around $26,000.
I sent out another video update on March 15 to my subscribers. I told them, “$30,000 looks to be like a chip shot from here.”
As I predicted in both videos, not only did bitcoin bottom just below $20,000 on March 10 – less than four weeks after my March 15 video, it blasted past $30,000.
There’s another reason why you want to take advantage of any buying opportunity that may emerge from the debt ceiling hubbub…
There’s a new development brewing beneath the surface that’s even more impactful than China’s re-entry into crypto.
This development is set to drive crypto user growth to 5 billion by 2030.
Yet as this new development drives crypto firmly into the mainstream, the crypto market will begin a maturing process as we move out of the current bear market.
The market will start to trade more like the stock market… It will become less volatile…
And the days where you can get in on a foundational crypto project that will shape our future for pennies on the dollar… Well, they’ll be gone forever.
On Wednesday, June 7, at 8 p.m. ET, I’ll fill you in on the details of this new crypto development… as well as a special sub-sector of cryptos that’s springing out of it.
These cryptos are set to lead crypto’s next bull run… handing those who get in now the possibility of securing the biggest gains of any cryptos.
Plus, when you become a VIP attendee for the event, you can claim two bonus reports:
BIG T’s SECRET: How to Make an Extra $1.4 Million in the Next Crypto Bull Market.
This 33-Cent Pick Will Ride AI and “Crypto’s New Development” to Breathtaking Gains.
I’ll also grant you access to a VIP “ask me anything” session. All you have to do is click here to register. (Please note I can’t give personal financial advice.)
So join me on Wednesday, June 7, at 8 p.m. ET… And let me show you why this might be the last time you can get crypto at these prices.
Let the Game Come to You!