Bitcoin (BTC) has fallen nearly 3% over the past 24 hours near $26,440, nearing its lowest level since May 12. During this time, the market has been plagued by low trading volumes and volatility amid ongoing regulatory and macroeconomic uncertainty as well as the US debt ceiling. Bitcoin remained in the range of $26,500 to $27,500 until the 24th.
Ruslan Lienkha, head of markets at fintech platform YouHodler, told CoinDesk in an email that “increased tensions in financial markets” are hurting stocks and digital assets.
“Equity indices are under selling pressure as fears of a possible US default have risen. Authorities have only about 10 days to reach some kind of deal, but progress has yet to be made on negotiations. No. These uncertainties are forcing financial institutions to reorganize their assets and prepare for possible defaults, putting further pressure on financial markets,” Lienka said.
Ethereum (ETH) is near $1,808, down about 2.6% in 24 hours. Litecoin (LTC) fell more than 5.2%, Solana (SOL) fell more than 3.6%, and most of the major cryptocurrencies were mostly down.
The CoinDesk Market Index (CMI), which measures the performance of the cryptocurrency market, fell 2.8%. The CoinDesk Bitcoin Trend Indicator shows a downtrend, indicating that investor optimism is receding. Many analysts believe that Bitcoin will not move until new factors are seen.
Major stock indices similarly struggled on Monday, with the Nasdaq, S&P 500 and Dow Jones Industrial Average all dropping more than 1%, at least temporarily restoring correlation between stocks and crypto assets. The two asset classes have been declining in correlation in recent months, but Treasury Secretary Yellen has warned for the third time this month that the government could be “underfunded” without a debt ceiling deal. , which seems to have hit all assets.
Cryptocurrency markets tumbled Friday morning after the UK consumer price index (CPI) rose 6.8% in April, beating expectations of 6.2%, the highest since 1992. The CPI, which turned out to be an unexpected figure, indicated the possibility of the UK central bank continuing to raise interest rates, and disappointment spread in the crypto asset market.
In an interview with CoinDesk TV, Glen Goodman, author of “The Crypto Trader,” noted that bitcoin has been more correlated with gold, a traditional safe haven asset, lately. However, he continued, Bitcoin still lacks a consistent motivation that drives investor decisions.
“We haven’t found a reason why everyone should have a goal yet, we’ve found a lot of reasons. The only problem is people aren’t sticking to one major story. And so on, waiting for some kind of disaster-like event to befall the global economy, and then, of course, we’ll all come together in one story.”
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: CoinDesk
｜Original: Bitcoin’s Doldrums Below $26.5K Endure as Investors Weigh Debt Ceiling Stalemate, Latest FOMC Minutes