Digital currencies including Bitcoin (BTC) and Ethereum (ETH) can witness substantial selloffs next week as the United States debt default deadline nears, Blockchain.com CEO stated on Thursday. Stocks and cryptocurrency prices will likewise fall after a debt ceiling deal as the United States Treasury Department expects to make available $700 Billion in Treasury bills to make up lost funds this quarter.
United States Debt Situation To Attract Cryptocurrency Market Correction
During the Qatar Economic Forum organized by Bloomberg, Blockchain.com CEO Peter Smith stated United States default or fall will likewise impact cryptocurrency at the beginning. Nonetheless, cryptocurrency prices will recover after a short period.
“On a long horizon, these are probably good for crypto…If the United States Government defaults, we’ll probably see a quick pull-back and then a very strong push upward in the cryptocurrency market.”
Smith likewise agreed that the cryptocurrency market recovering slowly this year and 2024 will be a substantial year for cryptocurrency Bitcoin (BTC) halving will happen in April.
“I think the cryptocurrency market is going to be much bigger in the future than it is today,” @blockchain‘s @OneMorePeter #QatarEconomicForum #منتدى_قطر_الاقتصادي @jennzaba pic.twitter.com/WneSNQr6iV
— Bloomberg Live (@BloombergLive) May 25, 2023
Blockchain.com is likewise seeing as an expansion of its small Middle Eastern office in Dubai, the United Arab Emirates. Dubai regulatory authorities and virtual investment regulations are progressive in cryptocurrency adoption. Blockchain.com gained approval from Virtual Assets Regulatory Authority (VARA) in September.
If the debt ceiling deal betwixt President Joe Biden and Republicans failed, it will be “catastrophic” for the worldwide market. Nonetheless, if the deal is reached, it will pull liquidity out of financial markets.
Furthermore, the United States Federal Reserve to pivot in the year. Fed officials are calling for two more hikes as inflation remains higher and the jobs market is still tight.
Bitcoin (BTC) Price Loses Momentum
Bitcoin price briefly dropped below the $26k level today as Bitcoin (BTC) investors panic owing to political partisanship in debt ceiling talks. Bitcoin (BTC) dropped 2 percent in the past 24 hours, with the price as of now currently worth $26,400. In the meantime, the Second largest cryptocurrency Ethereum (ETH) price trades over $1800, after sliding to an intraday low of $1763.
Trending analyst Rekt Financial resources predicts that if Bitcoin (BTC) loses the $26,200 support then the price would fall into the lower $20,000. The $26200 happens to be confluent support with the 200-week MA.