Bitcoin inches up, yet lacks pronounced impact. However, this growth has been relatively slow and lacks a pronounced impact on the market. Despite this, many experts believe that Bitcoin could experience a major catalyst in the near future due to the ongoing discussions surrounding the US debt ceiling.
Bitcoin Performance Over The Years
US President Joe Biden is optimistic about reaching an agreement on the budget after successful talks with House Speaker Kevin McCarthy.
The looming debt ceiling and possibility of US debt default were discussed, but Republican McCarthy stated that default is “off the table” and negotiation structures have improved.
Markets reacted positively to the optimistic tone, with the US dollar rising and the Nasdaq hitting a nine-month high.
Additionally, Tether’s recent announcement that it will invest up to 15% of net profits into Bitcoin each month pushed cryptocurrency markets higher, with BTC/USD bouncing off support around $26,600.
However, BTC/USD remains vulnerable to short-term sell-offs and technical support must hold near $26,600 for continued upward momentum.
A re-test of the recent $30,000 double-top is possible if resistance from moving averages is broken.
Bitcoin Stagnates as Regulators and Wall Street Weigh in on Use-case Arguments: Will the Crypto Market Recover or Suffer a New Downward Trend?
With no clear regulatory framework and lack of convincing use-case arguments, Bitcoin’s value remains stagnant.
This has discouraged many investors from returning to the market. If the underlying crypto fundamentals continue to be lackluster, experts predict we may experience another downward trend.
Overall, the CoinDesk Market Index (CMI), a measure of the overall crypto market’s performance, fell by 2.2% on Thursday. Despite this, equity markets closed higher on Thursday, with the Nasdaq, S&P 500, and Dow Jones Industrial Average up 1.5%, 0.95%, and 0.35%, respectively, after a late rally.
Ethereum/Bitcoin Chart in Tense Standoff: Will Resistance at 0.06787 Be Broken Soon?
The second-largest cryptocurrency by market capitalization, Ether (ETH), experienced a similar trend, declining by 1.6% to trade at roughly $1,795 on Thursday afternoon.
The current cryptocurrency chart situation is poised for a major move as resistance at 0.06787 remains stubborn while support from the 20- and 50-day moving averages hovers at 0.06630.
Experts predict a decisive break from this tight range is looming. Stay tuned for updates on this critical market development.
Debt Ceiling Debate: Mixed Views on Safe-Haven Assets
As the debt ceiling debate rages on, analysts are split on whether safe-haven assets will benefit. While some predict gold and bitcoin will surge, others remain skeptical of BTC’s potential to rise amidst a government default.
Debt ceiling increase could lead to drain of liquidity and favorable yields for US government bonds.
As the US Treasury ramps up issuance of debt to replenish its coffers, a sharp withdrawal of monetary liquidity may occur. This movement of funds could spell trouble for Bitcoin and gold as investors flock to safer assets such as US government bonds, especially if yields rise in response to an increase in supply.
Other Crypto Performances
Ripple (XRP) price has seen a bullish takeover as it manages to overcome selling pressure, reaching $0.463 at the time of writing. Following a positive development in the lawsuit against the SEC, XRP bulls anticipate a summary judgment from Judge Analisa Torres leading to a possible 20% rally to the $0.559 hurdle before June.
At the same time, the network is advancing its new XRP ledger-based CBDC platform despite privacy concerns. With buying pressure increasing, the remittance token’s recovery to April highs looks imminent.
The Relative Strength Index (RSI) supports the bullish outlook with room to cover before XRP can be deemed overbought. Stay tuned for further updates.
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