Crypto Wrap: US Debt Ceiling Negotiations Keep Market Going

The cryptocurrency market remained stable due to the uncertainty surrounding the US debt ceiling negotiations. Experts say UK inflation and regulatory concerns are also factors behind market capitalization remaining largely unchanged.

According to data from coinmarketcap, Bitcoin is down 1.46% over the past seven days and was trading at $26,445 on Friday. Ethereum was up 0.26% over the period, trading at $1,813 on Friday. Total market cap fell to $1.1 trillion from $1.2 trillion last week.

“The uncertain macroeconomic climate has contributed to a decline in the crypto market, fueled by concerns over inflation, crypto regulation and the current debt ceiling impasse. Federal Open Market Committee minutes revealed a divergence of opinion among U.S. central bankers regarding potential rate hikes, heightening traders’ attention to the upcoming Core PCE inflation data for April, which is expected to be released this Friday,” the research team said. of the CoinDCX crypto platform. Trade standard.

“Market sentiment was primarily driven by the ongoing debt ceiling-related negotiations, drawing investors’ attention. In terms of its month-to-date performance, Bitcoin saw a 9% decline,” said Alankar Saxena, CTO and co-founder of Mudrex.

Negotiations around the US debt ceiling have been slow, but media reports suggest that US President Joe Biden and US House of Representatives Speaker Kevin McCarthy appeared to be close to reaching a deal to reduce spending and raising the government’s $31.4 trillion cap. THURSDAY. They have until June 1 to find an agreement.

Over the past 24 hours, major crypto tokens have been rising.

“The slight increase could be attributed to the positive weekly U.S. unemployment data,” said Parth Chaturvedi, Chief Investment Officer, CoinSwitch Ventures.

“Currently, Bitcoin is facing immediate resistance at the $26,471 level. If the price closes near this level, there is potential for upward movement towards the $26,600 and $26,800 areas,” said Saxena.