cryptocurrency prices The bleeding continued on Thursday amid macro uncertainties. bitcoin (btc) The price dropped to around $26K today. This happens when market participants panic because of the administration’s bias in the debt ceiling debate.
Meanwhile, Fitch downgraded the US AAA credit rating to negative as Republicans and President Joe Biden failed to achieve bipartisanship on debt limit talks. The crypto space extended its decline this week, falling by more than 2% within the past day.
This saw global cryptocurrency market capitalization crash, as did major alts. Ethereum, cardano, XRP, solanaAnd polygon threatening to breach their important support levels.
bitcoin down day
Investors welcomed the Asian trading day and expressed concerns about the latest macroeconomic woes that have affected the crypto market for nearly two weeks. This has seen bitcoin drop to $26.3K, a loss of almost 3% in the last 24 hours.
The leading cryptocurrency traded in a range before surrendering the $26.5K support on Wednesday. Meanwhile, crypto regulatory concerns and debt ceiling impasse continue to hurt the market. The FOMC minutes did little to appease the market as they confirmed differences of opinion among the United States’ central bankers.
Commenting on the current trajectory of bitcoin, Edward Moya of Oanda said that the crypto is maintaining range-bound conditions. He added that BTC will consolidate around the lower boundary of its sinking range, with $25K offering stable support.
potential bullish catalyst
Fed minutes confirm a broad agreement (within the board) about an interest rate hike amid current indecision. However, the committee remained unsure about a rate hike in subsequent meetings.
Thus, the FOMC will continue to monitor incoming news regarding the economic trajectory. In addition, the committee will prepare to fine-tune its fiscal policy stance amid risks that could prevent it from achieving its goals.
This could mean an attractive environment for bitcoin and crypto as macroeconomic uncertainty catalyzes near-term weakness. Nonetheless, crypto experts remain bullish as far as the long-term outlook is concerned. Investors should follow the latest crypto news for the upcoming market direction.
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