#BTCBreaks110K The U.S. Treasury Secretary, Scott Bessent, has warned that the country could hit its debt limit by August, risking a default on government obligations unless Congress acts swiftly. To avoid this crisis, Bessent is urging lawmakers to raise or suspend the debt ceiling by mid-July. Here's what's at stake¹:

- *Debt Ceiling Deadline*: The U.S. could run out of emergency debt limit measures by August, potentially leading to a default.

- *Congressional Action*: House Republicans are working on a budget package that would increase the debt ceiling by $5 trillion, including tax cuts, spending reductions, and increased funding for defense and border security.

- *Potential Consequences*: Failure to act in time could lead to serious financial and economic consequences, including:

- *Credit Rating Downgrade*: Agencies like Moody's and S&P may further downgrade U.S. Treasury creditworthiness.

- *Economic Instability*: A debt crisis could spark chaos in credit markets, disrupt the economy, and increase borrowing costs.

- *Loss of Investor Confidence*: A default could prove catastrophic, as warned by JPMorgan Chase CEO Jamie Dimon.

The current state of U.S. debt is alarming, with the national debt exceeding $36 trillion and the debt-to-GDP ratio at around 122-124%, the highest since World War II. The Congressional Budget Office forecasts this ratio to rise to 118% by 2035, indicating a prolonged structural imbalance.#CryptoRoundTableRemarks $BTC