Bitcoin, Ethereum, Dogecoin Fall As Debt-Deal Rally Fizzles Out: Analyst Who Called 2021 Bottom Sees Possible 'Moon Time' For Apex Crypto

Major cryptocurrencies are back slightly in the red on Monday evening after the post-debt ceiling deal rally came to an end.

What Happened: Bitcoin’s immediate future looks promising, as per blockchain data that indicates short-term holders are moving BTC at a profit. 

Glassnode, a blockchain analytics company, reports that the seven-day moving average of the short-term holder’s (STH) spent output profit ratio (SOPR) has recently rebounded above 1. 

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At the time of writing, the global crypto market capitalization stood at $1.16 trillion, a decrease of 1.09% over the last day. 

Stock futures spiked on Monday evening following news of a tentative agreement between the Biden administration and Republican lawmakers on raising the U.S. debt ceiling. Futures tied to the S&P 500 saw a gain of 0.3%, while Nasdaq-100 futures climbed 0.5%.

President Joe Biden and House Majority Leader Kevin McCarthy have successfully reached a bipartisan agreement to raise the debt ceiling and prevent a looming default. The proposed legislation is expected to be voted on as early as Wednesday, however, Congress has yet to confirm whether they will need to return to Capitol Hill to review the proposal. In order to pass the bill agreement, both Republican and Democratic support is crucial.

As Memorial Day was celebrated on Monday, the US stock markets remained closed.

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Analyst Notes: "The Debt Ceiling is lifted for the coming 2 years. It’s even unlimited, which means that we’re getting into the end stages of the strength of the U.S. Dollar. On the other hand, lifting the Debt Ceiling shouts for continuation on the money printer and that is bullish for BTC," said crypto analyst Michaël van de Poppe.

Pseudonymous analyst DonAlt shared his thoughts on Bitcoin’s performance and potential. In his analysis, he sees a potential bullish scenario where Bitcoin overcomes multiple resistances across different timeframes and skyrockets to as high as $35,000. "I do like $27,400 again. I think if we reclaim it, it's moon time… And timeframes would start cascading into each other, which I love to see," adding that "if that goes into the monthly, the monthly resistance is at $35,000."

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