Major cryptocurrencies were showing significant gains Sunday evening following news of a deal reached by the White House to avert a looming debt ceiling crisis.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Bitcoin BTC/USD | +3.86% | $28,166 |
| Ethereum ETH/USD | +3.52% | $1,914 |
| Dogecoin DOGE/USD | +1.10% | $0.073 |
What Happened: The buying frenzy is not limited to Bitcoin alone as select altcoins are also exhibiting signs of an upswing.
Over the weekend, House Speaker Kevin McCarthy informed reporters that the bill still requires some work before completion. He anticipated that it would be ready by Sunday, with voting on Wednesday.
Meanwhile, President Joe Biden said the deal is “an important step forward” in a statement, calling it a compromise.
Top Gainer (24 Hour)
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Mask Network | +14.72% | $4.79 |
| PanCake Swap | +10.43% | $1.73 |
| Injective | +8.63% | $7.12 |
At the time of writing, the global crypto market capitalization stood at $1.17 trillion, an increase of 2.93% over the last day.
The U.S. stock futures gained following the announcement of the deal to raise the federal debt limit. Contracts for the S&P 500 and Nasdaq 100 rose approximately 0.5%, signaling optimism in the market.
The positive sentiment continued after the US markets closed higher on Friday, with tech stocks leading the rally. The Dow Jones Industrial Average climbed 1%, while the S&P 500 gained 1.30%. The Nasdaq showed the strongest performance with a rally of 2.19%.
As Memorial Day was celebrated on Monday, the US markets remained closed.
See More: Best Crypto Day Trading Strategies
Analyst Notes: "Decent move on Bitcoin, in which the weekly and monthly candles are improving. Needs to get a higher low and then we'll continue moving towards $30,000," said crypto analyst Michaël van de Poppe.
Pseudonymous crypto analyst Bluntz, said that Bitcoin is poised for a surge towards the $29,000 mark.
The trader said that Bitcoin’s current market structure looks similar to its price action in the latter half of 2019. During that period, BTC swiftly rose from $8,000 to $12,000 in just under a month.
"I'm actually also open to the idea of BTC bouncing a little bit higher than the top of the channel, similar to 2019. (It) would probably give alts a fair bit of room to have decent bounces as well as some are looking set to do."
Bluntz anticipates a temporary rebound for Bitcoin in the near future but is of the opinion that the surge will not last. He predicts that BTC will ultimately return to its downward trajectory, landing at a price level around the low $20,000 mark.
Pseudonymous trader DonAlt’s suggests that the lack of follow-through from BTC bears after defending resistance at $30,000 is a good sign for Bitcoin's future.
DonAlt notes that Bitcoin traditionally plummets after hitting a key resistance level but the fact that it is consolidating near $30,000 is a positive sign, indicating there may be more good news on the horizon for the cryptocurrency.
"Like I said on the monthly, we've had a breakdown here, and so far nothing's happened, and I think that's a good thing for bulls. Every week that goes by I will become more and more bullish, even if (the) price doesn't change. Obviously, if (the) price goes up, I'm just going to flip back bullish entirely."
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