The United States has hit its $31.4 trillion debt ceiling and is running out of money. 

As Treasury Secretary Janet Yellen pointed out, the debt ceiling needs to be lifted before June 1. Otherwise, the country risks missing its debt obligations due to Treasury bondholders, thereby defaulting on its sovereign debt.

Bipartisan negotiations are underway to lift the debt ceiling, but no agreements are in sight. While Democrats want the ceiling to be raised without any preconditions, Republicans are demanding several cuts in government spending as contingencies for lifting the ceiling.

Most experts agree that a U.S. government default would be catastrophic for the U.S. economy and the global financial system: the stock markets could crash, millions of jobs could be lost, and the economy would likely fall into a recession.

But what are the chances of the U.S. government defaulting on its debt? And what are the impacts of the debt ceiling crisis on crypto and the broader market? We answer these questions in the latest Cointelegraph Report.

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