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US Government Wipes Student Debt, How Will It Impact Crypto? – BeInCrypto

US President Joe Biden recently announced the cancellation of $127 billion worth of student loan debt for approximately 3.6 million Americans.

The announcement received mixed reactions, with some speculating about the price of the cryptocurrency. On the other hand, some people questioned the specific method of debt consolidation.

Pros and cons of US government student loan cancellation

Mr. Biden’s announcement on X (formerly Twitter) that the U.S. government would cancel student debt across the country caused an uproar. reaction. “It’s a big deal,” he reiterated.

Renowned market commentator Mike Alfred shared with his 134,500 followers that this could be a positive indicator for Bitcoin price.

“Yes, because the value of Bitcoin will definitely increase.”

But some are concerned about what impact it will have in the coming years. “It’s going to cost more taxpayers,” one X user said, while another questioned the legitimacy of Biden’s statement.

“Just because the rest of us have to pay, it doesn’t mean it’s ‘cancelled.’”

Debt forgiveness could boost crypto investment

Debt forgiveness could allow previously indebted individuals to explore investment opportunities in cryptocurrencies.

In January 2021, the cryptocurrency market experienced a historic surge after the U.S. government distributed COVID-19 relief checks.

The market capitalization exceeds $1 trillion, and Bitcoin reached an all-time high of about $65,000 during the same period.

The $1.9 trillion stimulus package included $1,400 direct payments to Americans and provided critical support to local governments and businesses.

Debt forgiveness and stimulus checks are different, but ultimately both lead to an increase in net worth.

At the time of publication, the price of Bitcoin is $27,961.

1 month Bitcoin price chart. Source: BeInCrypto

This comes as the US national debt level reaches an all-time high.

On September 19th, BeInCrypto reported that the total US federal debt exceeded $33 trillion for the first time in history. Maya McGuineas, Chair of the Committee for a Responsible Federal Budget, said:

“The United States has reached a new milestone that no one can be proud of: our total national debt has just surpassed $33 trillion.”

Disclaimer

In accordance with Trust Project guidelines, BeInCrypto is committed to fair and transparent reporting. This news article is intended to provide accurate and timely information. However, before making any decisions based on this content, readers are encouraged to independently verify their facts and consult a professional.

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