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1 June 2023
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Crypto Crash: Bitcoin Falls to $26,100 as Investors Weigh Debt Ceiling, Latest FOMC Minutes – Is $20k or $30k Next? Report

The world’s largest cryptocurrency bitcoin (BTC) has once again come under strong selling pressure amid concerns about the US debt ceiling and other market uncertainties. At press time, BTC is trading 2% down at a price of $26,197 and a market cap of $508 billion.

The recent price dip in Bitcoin is crucial considering that the BTC price has dropped under the crucial support level of $26,500. This comes amid the ongoing debt ceiling stalemate along with inflationary and crypto regulatory concerns.

The Fed executives and US lawmakers have been divided over raising the debt ceiling further. However, with the deadline approaching closer in early June, not raising the debt ceiling could push the US toward a potential default. Edward Moya, senior market analyst for foreign exchange market maker Oanda, wrote:

Bitcoin is under pressure as the risk of a U.S. default grows. Bitcoin is going to be very sensitive to surging Treasury yields as too many crypto/blockchain companies will struggle with financing. It is hard enough to find a bank that will deal in cryptos, let alone take out loans for long-term projects.

Bitcoin remains rangebound and should continue to consolidate near the lower boundaries of its downward sloping trading range, with the $25,000 level providing massive support.

Where’s Bitcoin Heading Next?
The recent selling pressure in Bitcoin shows that the signs are clearly not encouraging for Bitcoin bulls. Bitcoin has been breaking under crucial support levels which hints that there’s more pain in sight. Citing data from IntoTheBlock, popular crypto analyst Ali Martinez noted:

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