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- Bitcoin and crypto come under selling pressure amid the ongoing debt ceiling stalemate along with inflationary and crypto regulatory concerns.
- The BTC price has dropped under the crucial support of $26,500. This opens the gate for further correction to $23,200.
The world’s largest cryptocurrency bitcoin (BTC) has once again come under strong selling pressure amid concerns about the US debt ceiling and other market uncertainties. At press time, BTC is trading 2% down at a price of $26,197 and a market cap of $508 billion.
The recent price dip in Bitcoin is crucial considering that the BTC price has dropped under the crucial support level of $26,500. This comes amid the ongoing debt ceiling stalemate along with inflationary and crypto regulatory concerns.
The Fed executives and US lawmakers have been divided over raising the debt ceiling further. However, with the deadline approaching closer in early June, not raising the debt ceiling could push the US toward a potential default. Edward Moya, senior market analyst for foreign exchange market maker Oanda, wrote:
Bitcoin is under pressure as the risk of a U.S. default grows. Bitcoin is going to be very sensitive to surging Treasury yields as too many crypto/blockchain companies will struggle with financing. It is hard enough to find a bank that will deal in cryptos, let alone take out loans for long-term projects.
Bitcoin remains rangebound and should continue to consolidate near the lower boundaries of its downward sloping trading range, with the $25,000 level providing massive support.
Where’s Bitcoin Heading Next?
The recent selling pressure in Bitcoin shows that the signs are clearly not encouraging for Bitcoin bulls. Bitcoin has been breaking under crucial support levels which hints that there’s more pain in sight. Citing data from IntoTheBlock, popular crypto analyst Ali Martinez noted:
Notice that #Bitcoin appears to be losing all major areas of support. This increases the probability of a correction to the next important demand wall between $23,200 and $24,000, where 850,000 addresses had previously purchased 340,000 BTC.
Another popular crypto analyst Michael Van de Poppe noted: “Bitcoin still swimming around the lows. Last night we’ve seen a sweep of the low at $26.1K, no sweep of $25.8K yet. Today is probably the decisive day for trend-based perspectives. If we run back up to $26.6Kish, I think we’ve seen the low. Looking at longs. If you look at the higher timeframes for #Bitcoin, things are still fine. Healthy correction in an uptrend, approaching many support levels”.
Along with Bitcoin, altcoins have also come under selling pressure. On Wednesday, May 24, the Ethereum (ETH0 price also tanked by 2.40% slipping under $1,800 levels.
The Shake Up In the US Crypto Industry
Amid the heavy crackdown by the US regulators over the past few months, local crypto industry players are looking to shift their base out of the country. Some of the top crypto exchanges such as Coinbase, Kraken, and others have been looking at other crypto-friendly jurisdictions to continue to serve their customers.
Coinbase has threatened that if the US doesn’t bring clarity on crypto regulations very soon, they will move their operations out of the country. The lack of regulatory clarity has hurt the industry to a considerable extent.
