US Debt Ceiling Debate Triggers Drop in Bitcoin, Ethereum, and Dogecoin Prices
Major cryptocurrencies such as Bitcoin and Ethereum were seen trading lower on Monday evening as concerns about liquidity in the global financial system and the ongoing debt ceiling debate in the US weighed on investor sentiment. The global crypto market capitalisation stood at $1.13tn, down 0.63% over the last day. Analysts speculate that Bitcoin could continue to move downwards and reach $38,000-$42,000 if risk aversion triggers de-risking. However, some analysts believe Bitcoin is holding the 200-day moving average (MA) and exponential moving average (EMA) on the weekly timeframe, indicating an upward trend could follow that reach $70,000+. Despite the recent rejection from $30,000, popular crypto analyst, CredibleCrypto, has doubled down on his bullish stance on Bitcoin as it is not a guarantee that the liquidity gap at $20,000 will be filled. The crypto analyst believes the gap is unlikely to be filled anytime soon, as it would require a significant amount of selling pressure. Meanwhile, U.S. stocks rose marginally as investors weighed the ongoing debt ceiling debate and corporate earnings. The Nasdaq Composite rose 0.7%, and the S&P 500 added 0.3%.
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