Bitcoin Steady Below $28K
By Laxmikant Khanvilkar
Leading virtual digital assets (VDAs) have partially pared previous day gains, but quoted near flatline as investors eye the outcome of a debt ceiling deal, whose passage remained likely but not assured.
Bitcoin (BTC) fell below $28,000 during U.S. trading hours. However, the largest cryptocurrency by market capitalization was recently trading at around $27,740, up 0.1%. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, rose roughly 0.6% to change hands at around $1,905.
BTC topped $28,000 on Sunday, for the first time in almost three weeks, after U.S. President Joe Biden and House Speaker Kevin McCarthy reached an agreement to suspend the debt ceiling until Jan. 1 2025 and prevent the nation from defaulting on obligations as soon as June. The deal also means that the U.S. Treasury would likely issue around $1 trillion of debt to replenish its Treasury General Account.
Among other digital assets, payments-focused cryptocurrency XRP jumped more than 6% for the day to trade at around 52 cents, while storage protocol Filecoin’s FIL token rose by 4% to trade at $4.83.
The global crypto market cap added 0.26% over the last 24-hours to $1.16 tn, led by increased investor participation. The total crypto market volume rose 0.41% to $30.35 bn during the same period. Of this, the total volume in DeFi is currently $2.39 bn or 7.89% while all stablecoins volume is now $28.18 bn, which is 92.88% of the total crypto market volume. Bitcoin’s dominance is currently 46.42%, a decrease of 0.10% over the day.
IC15 index, the barometer of top fifteen tokens, is marginally higher at 38,140.
Analysts expect BTC to show resilience amid further monetary tightening.
Meanwhile, traders have also revised their expectations for a more dovish, monetary turn by the U.S. Federal Reserve. The CME FedWatch Tool now shows a 66% probability that the Fed will raise interest rates 25 basis points for a fourth consecutive time at its June meeting. Only 28% expected a rate hike just a week ago.
Elsewhere, after a three-day, holiday weekend equities were mixed. The S&P 500 closed flat on Tuesday, while Dow Jones Industrial Average (DJIA) slid 0.1%. The tech-heavy Nasdaq was up 0.3%.
The House is expected to vote on the debt ceiling deal on Wednesday with some hardline conservatives already indicating that they would not vote for the hard-fought package and a few progressive Democrats yet to commit.
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