The situation in the markets does not help cryptocurrencies, especially with regard to the US debt ceiling and the possibility of default.
The cryptocurrencies they yield more than 4% this Wednesday, May 24. Bitcoin falls 3% in the last 24 hours and operates at $26,200, while Ethereum falls 2.6% to $1,700. In this way, the leader of cryptocurrencies hits minimums in more than 2 months, when in mid-March it pierced US$26,000 and traded at US$24,900.
The bearish streak of Bitcoin
“Bitcoin is still in consolidation, but not moving in any direction. The recent trend is very contrary and the break of $27,000 suggests that it may have entered corrective territory, but has been very resilient thus far. If we do see a move lower, the May 12 lows offer the first test of support followed by $25,000,” explains Craig Erlam, Senior Market Analyst at OANDA.
The truth is that cryptocurrencies They have spent weeks without really knowing where they are going. As soon as they threaten to raise their heads as they re-enter consolidation ground. One day bitcoin and ethereum seem to be climbing steadily and slowly and the next those gains are gone in a flash amid a token fever meme.
“So far this year, spot bitcoin volume has increased in emerging markets and Japan, while it has declined in the European, UK and US markets. The supply of BTC stored on exchanges fell below 12% for the second time during 2023, which continues to show fear among investors amid multiple bankruptcies that affected crypto companies and banks,” says Matteo Greco, research analyst at Fineqia International.
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Tension in the markets affects cryptocurrencies
The situation in the markets does not help cryptocurrencies either, especially regarding the US debt ceiling and the possibility of default. In parallel, the speech of the Federal Reserve (Fed) also took a turn, when in recent days some representatives of the Board of Directors left the door open to raise interest rates again.
Source: Ambito
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