Bitcoin Dips Below $28K: US Debt Ceiling Vote Looms, BTC Price May Drop to $25K
• Bitcoin (BTC) is trading 2.48% down at a price of $27,116 with a market cap of $525 billion as the US debt ceiling deal yet to come to fruition.
• Analysts express concerns over the US debt ceiling and potential quantitative tightening impact on Bitcoin.
• If the lawmakers agree for raising the debt ceiling, the US Treasury would issue $1 trillion of debt to replenish its Treasury General Account.
Bitcoin Dips Below $28K
Bitcoin (BTC) has once again come under strong selling pressure and is trading 2.48% down at a price of $27,116 with a market cap of $525 billion. The world’s largest cryptocurrency has dropped close to $27,000 as uncertainty over the US debt ceiling raise hovers around with the deal yet to come to fruition. Along with Bitcoin, altcoins have also dropped close to 2%.
US Debt Ceiling Vote Looms
Last Sunday, US President Joe Biden and House Speaker Kevin McCarthy reached a deal to suspend the debt ceiling until January 1, 2025. However, this move was short-lived and Bitcoin is facing major selling pressure over the last two days moving it close to $27,000. The deadline to raise the debt ceiling is just a week away or else the US would default for the first time ever. This could potentially send shockwaves across the global financial markets hurting risk assets like stocks and crypto majorly.
Quantitative Tightening Ahead?
Although there were talks of raising its debt ceiling earlier this week which sparked optimism in crypto markets but analysts aren’t optimistic about future scenarios if this happens due to quantitative tightening by Fed Reserve which might make financing options difficult for crypto companies over next year according to Edward Moya from foreign exchange Oanda. There’s also 66% probability that Fed will raise interest rates by 25 basis points for fourth consecutive time in June meeting which adds further concerns about BTC movement in near future.
Impact on Crypto Market
The broader cryptocurrency market is down by 1.89 while altcoins have also dropped close to 2%, as uncertainty around US decision looms ahead investors are getting jittery whether they should continue holding crypto or not ? On one hand if government agrees on raising its ceil then BTC might surge back up above 28k but if not then it may go as low as 25k within few days & can even further drop if other negative news like China ban comes out in light , So investors need be cautious while investing their money into digital assets & need act according prudent way before investing into cryptocurrencies .
With just one week left till deadline for decision making regarding U S Debt Ceiling vote ,investors are eagerly waiting how things pan out & expecting some positive outcome so that crypto prices can surge again . Investors should keep an eye on any news related developments regarding U S Debt Ceiling Vote & take investment decisions accordingly .