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

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

Bipartisan negotiations are already underway to lift the debt ceiling, but no agreements is in sight so far. While Democrats want the ceiling to be lifted without any preconditions, Republicans are demanding a number of cuts in government spending as contingencies for lifting the ceiling.

Most experts agree that a U.S. government default would be catastrophic not only for the U.S. economy but also for the global financial system: the stock markets would crash, millions of jobs would be lost, and the economy would likely fall into a recession.

But what are the chances the U.S. government is 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.