In the face of fear-mongering media and childish politicians, traders, especially in risky markets of crypto are nervous, but No, the US government will not default on their debt. Actually, it is [SERIOUS]ly impossible for them to do so

We have heard them go through the whole song and dance of if the debt ceiling will be raised. The political side says one thing and the other side says another and they seem at loggerheads being unable to come to an agreement to be able to raise the debt ceiling. There's just days left on the clock before a default on paper. But despite what all media fear-mongering media will tell you, it is impossible for the government to default. Let me tell you why.

First of all, in the Constitution it is mandated that the US shall pay it's debt by the constitution. As per the 14th Amendment

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https://preview.redd.it/qvw21tsx4l2b1.png?797&format=png&auto=webp&s=2b1d13c414ba9b5edb2ff77957dce80bd5fdecf3

Let's go a bit further then. Also defined at 31 U.S. Code § 3123, by federal law the government shall also pay it's debt by way by way of the Treasury department.

https://preview.redd.it/3pjp1jtf5l2b1.png?749&format=png&auto=webp&s=ce4c0c8cf5b5a9d5477a966c746ec720100f3b95

So we have both the Constitution and the Federal law demanding the US government must pay their debt. Good. Now you may ask however, where will that money come from. Well, the government received around 4.7 Trillion dollars of funds in Q1, mainly from taxes. While the the debt interest payments were around 930 Billion dollars.

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Government Q1 Receipts

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Government Q1 debt

Of course, these are Q1 numbers and Q2 number have yet to be released, but common sense would tell you that Q2 numbers aren't far off from the Q1 numbers. So using Q1 number as a proxy, the government brings in 4.7 Trillion - 930 Billion i interest owed, means the government has more than enough money to pay their debt interest expenses using tax money alone. Further, I've already outlined that the debt essentially takes first priority over any other payments or spending. There's a small caveat that may increase the debt payments owed, given the way bonds mature and how the principal is paid back and it is unclear whether interest payments are included in this principal, but given the tax money is almost 5x the debt, I'm fairly sure it's covered.

So basically no, there's isn't going to be a monumental crash as the US defaults that would have taken out risk markets of tech and crypto first. Ironically, even if the debt ceiling isn't raised, the government just has to pay the debt with current tax money and simply spend less, which is precisely what everyone wants them to do anyway.

TLDR: Media is once again fear-mongering for views and clicks and the politicians put on an act from attention and their own amusement(among other things) and playing with people's livelihoods. With certainty, there would have already been traders and markets who lost some or even a lot of money because of debt ceiling panic.