Oil prices continued to rise on Tuesday due to a seasonal increase in gasoline demand and production cuts from OPEC+ producers. Brent crude futures rose by 0.37% to $76.27 a barrel, while U.S. West Texas Intermediate (WTI) crude increased by 0.43% to $72.36 a barrel. The rise in oil prices was also attributed to planned U.S. purchases to refill the Strategic Petroleum Reserve and voluntary production cuts by OPEC+. However, concerns over the risk of a U.S. debt default limited gains. Investors are keeping a cautious eye on negotiations to raise the U.S. government's debt ceiling, which could impact fuel demand growth both domestically and globally.

President Biden has taken a strong stance against a debt deal that would protect crypto traders, expressing concerns about potential loopholes and dangers associated with the provision of benefits to bitcoin traders in particular. He emphasized the need for cautious consideration and regulation of the digital currency industry. The US Treasury Department warns of possible consequences if the federal government defaults, which is crucial to preventing a potential default on the repayment of debt by the US government before the deadline. The G7 has acknowledged the increasing significance of cryptocurrencies and has discussed their implications and regulatory challenges during meetings.

The stock market is facing potential economic events that could affect market sentiment, including the ongoing debate surrounding the US debt ceiling before the June 1 deadline. The US Treasury Department has warned of a possible default on the $31.4 trillion debt if a deal is not reached. Additionally, the US Federal Reserve officials are considering a potential pause in Fed rate hikes, and several macroeconomic events are scheduled for the remainder of May 2023, including the release of the PCE Index. 

Bitcoin's value dropped below US$27,000 on Sunday and continued to dip on Monday, with all top 10 non-stablecoin cryptocurrencies falling except for Tron, which saw a rise. The decline in Bitcoin's value is being attributed to wider macro developments and investors weighing the implications of U.S. debt ceiling negotiations. Despite lower than expected U.S. consumer price index data and ongoing efforts to raise the U.S. debt ceiling, Bitcoin has failed to react positively. Tron, on the other hand, climbed 2.73% over the past 24 hours, possibly due to the announcement by its founder Justin Sun that he would begin trading in memecoins.

Bitcoin has been struggling to surpass the $27,500 resistance level for the past week, partly due to the risk of a potential U.S. default as the government struggles to get the debt limit increase approved in Congress. However, some analysts and investors believe that the debt ceiling standoff is just a "show" and that additional money will eventually enter the markets, leading to inflationary pressure. As a result, some investors suggest owning hard assets like Bitcoin. Despite recent positive macroeconomic data, a U.S. debt default could still negatively impact the global economy, as many countries hold significant amounts of U.S. Treasuries. Professional traders in the Bitcoin market seem to be favoring bullish positions, with no signs of excessive leverage from buyers. If the U.S. debt ceiling stand-off continues, Bitcoin's market structure is bullish and could rally towards $28,000. However, readers should conduct their own research and be aware of the risks involved in any investment or trading move.

Bitcoin and Ethereum prices in Asia have remained stable despite ongoing debt ceiling negotiations in the US. Bitcoin has increased by 1.3% to $27,403, while Ethereum has decreased by 0.1% to $1,822. Tether and Circle have announced diversification into crypto to protect against potential US government debt default risks. The industry is eagerly awaiting the release of documents related to William Hinman's 2018 speech on crypto and securities, which could provide insight into the reasoning behind his statement that Ether is not considered a security. Additionally, upcoming events such as the Blockchain Expo North America and the FINRA Annual Conference 2023 are important for the crypto market.

Stablecoin issuer Circle Internet Financial is adjusting the reserves supporting the $30 billion USD Coin (USDC) in anticipation of a possible U.S. government debt default. The Circle Reserve Fund, managed by BlackRock, has added $8.7 billion in overnight repurchase agreements involving banking giants such as BNP Paribas, Goldman Sachs, Barclays, and Royal Bank of Canada. These short-term collateralized loans provide additional protection for the USDC reserve in the unlikely event of a U.S. debt default. Circle is making these changes as U.S. lawmakers negotiate with President Joe Biden's administration over raising the government's ability to issue new debt, also known as the debt ceiling.

President Joe Biden and Republican Kevin McCarthy are aiming to reach a deal by Sunday to raise the federal government's $31.4 trillion debt ceiling and avoid a default. The negotiations are about the outlines of the budget, not about whether or not the US will pay its debts. Republicans have been insisting that Democrats agree to spending cuts in exchange for a deal to raise Congress's self-imposed debt limit. Negotiators are aiming to hammer out an agreement before Biden's scheduled return to Washington on Sunday.

President Joe Biden and House Speaker Kevin McCarthy are confident that the United States will not default on its debt, despite ongoing negotiations and the approaching deadline to raise the debt ceiling. The negotiations are now entering a more serious and concrete phase, with the possibility of a deal drawing nearer. However, a key point of contention is the Republican request to attach work requirements to federal food benefits, which Democrats describe as a "nonstarter." Taxes will not be discussed in this debt ceiling debate, according to McCarthy. The consequences of defaulting on sovereign debt would be disastrous for the economy and global markets, with the loss of 2 million jobs even in the case of a brief default. Both sides are working to find common ground and prevent a default before the June 1 deadline.

European markets are set for a busy day on Tuesday with preliminary growth numbers for the euro zone, inflation in Italy, jobless data for Britain, and the German economic sentiment ZEW survey all being released. Analysts predict no surprises in euro zone GDP data, but the German ZEW survey for May is expected to be in the spotlight. The weakness in the euro zone's largest economy is a concern for market bulls, especially given Asia's largest economy is still struggling to get demand going. The U.S. debt ceiling debate is also ongoing, with President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy meeting on Tuesday to find common ground on spending levels and an increase in the nation's debt limit.