BTC Rallies Above $27K Amid Debt Ceiling Debate
By Laxmikant Khanvilkar
Leading virtual digital assets or VDAs have rebounded on Tuesday early morning Asia trade as the U.S. debt ceiling talk underpinned support even as liquidity pressure continues to hassle investors.
After starting the U.S. trading week with gains, Bitcoin (BTC) moved above $27,000 from as low as $25,800 late on Friday.
The largest cryptocurrency by market capitalization was recently trading at around $27,267, up roughly 1.7% in the past 24 hours.
Analysts are hoping the U.S. debt ceiling deliberation to provide clarity on VDAs future prospect. Edward Moya, senior market analyst at foreign exchange market maker Oanda, suggested in a Monday note that upcoming debt ceiling talks will “tell us a lot if investors believe bitcoin can behave more of a safe-haven despite all the regulatory uncertainty.”
Ether (ETH), the second-largest cryptocurrency by market capitalization, rose more than 1.54% to hover around $1,821.
Among other digital assets, LDO, the governance token for the liquid staking platform Lido, surged 11% to trade at $2.15, while indexing protocol The Graph’s GRT token jumped more than 12% to trade at $0.12.
The global crypto market cap increased 1.30% to $1.14 tn, over the last 24-hours. The total crypto market volume rose 39.34% to $30.98 bn, during the same period. The total volume in DeFi is currently $2.04 bn, 6.60% of the total crypto market volume. The volume of all stablecoins is now $28.29 bn, which is 91.30% of the total crypto market volume. Bitcoin’s dominance is currently 46.48%, an increase of 0.18% over the day.
IC15 index, the barometer of top 15 tokens, last quoted 0.96% higher at 37,967.
Meanwhile, investors have been weighing the low liquidity of late in crypto markets, with market makers Jane Street and Jump Crypto last week retreating from crypto trading in the U.S. due to regulatory uncertainty. Crypto data firm Kaiko’s report on Monday showed that BTC’s 1% market depth – a gauge that measures liquidity conditions – dropped 4% over the past month, while ETH’s slid 2%. Altcoin liquidity suffered even worse, down roughly 17% on a monthly basis.
Elsewhere, the U.S. equities turned higher on Monday, with the S&P 500 closing higher by 0.3% and the tech-heavy Nasdaq up just shy of 0.7%. The Dow Jones Industrial Average (DJIA) edged ahead by 0.1%.
In bond markets, the note on the 2-year Treasury yield remained little changed at 4.00%, while the 10-year Treasury yield rose 3 basis points to 3.50%.
Analysts have pointed to current yield curve inversions indicating at recession in the next 12 months.
Investors this week across the board will be eyeing several economic readings for indications of a slowdown, including U.S. monthly retail sales and housing data.
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