Major cryptocurrencies posted gains on Monday evening, buoyed by the latest developments in the ongoing U.S. debt ceiling crisis.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Bitcoin BTC/USD | +1.62% | $27,059 |
| Ethereum ETH/USD | +2.40% | $1,838 |
| Dogecoin DOGE/USD | +3.12% | $0.073 |
What Happened: Bitcoin has been trading within a tight range of $26,500 to $27,500 for nearly two weeks. This stability is occurring despite the widespread macroeconomic uncertainties surrounding the US debt limit negotiations and other factors.
Despite the inability to reach an agreement in talks between Biden and House Speaker Kevin McCarthy on Monday, the cryptocurrency markets saw an upward shift.
Top Gainers (24 Hours)
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Conflux | +12.61% | $0.3234 |
| NEO | +7.59% | $9.86 |
| IOTA | +5.49% | $0.1852 |
At the time of writing, the global crypto market capitalization stood at $1.13 trillion, an increase of 1.52% over the last day.
The US stock market on Monday showed slight movement as markets anticipated the outcome of the crucial debt ceiling meeting, and government officials worked to prevent a potential default. The benchmark index S&P 500 made a minimal gain of 0.02%. Meanwhile, the Nasdaq Composite experienced slightly more significant growth, rising by 0.5%.
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Analyst Notes: "Crypto traders are not sure how Bitcoin will behave throughout the next several days of debt ceiling negotiations. Congress has raised the debt ceiling 78 times since 1960, which means the US has always paid its bills on time. The risk of default is very small but if it were to happen that could feel like an uppercut to risk appetite which would send cryptos sharply lower. Bitcoin appears content to trade near the lower boundaries of its recent trading range between $26,500 and $30,000," said Edward Moya, Senior Market Analyst at OANDA.
Bloomberg Intelligence’s senior macro strategist, Mike McGlone, has issued a stark warning about Bitcoin. He cautions that the cryptocurrency could plummet to levels that were last seen in 2020. Currently, Bitcoin is up nearly four times from the levels that it was trading at when the Federal Reserve started pumping money into the market in response to the COVID-induced collapse.
However, McGlone believes that with liquidity drying up and interest rates rising, a “mean reversion” that takes Bitcoin back to its starting price of around $7,000 is a distinct possibility.
According to crypto analyst Michael Van de Poppe, the crypto market is about to experience significant volatility within the next week, particularly for Bitcoin.
Pseudonymous crypto analyst Dave the Wave said BTC is currently consolidating within the “buy zone.”
Based on Dave’s analysis, Bitcoin is considered a great investment opportunity as long as its market value remains below $31,000. This “buy zone” implies a positive outlook for BTC’s future, despite its recent market fluctuations.
According to Dave, BTC currently has a strong market structure and is likely to achieve its next significant milestone at $32,000.
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