Cryptocurrency dropped with stocks on Wednesday as investors worried about the debt ceiling and the Federal Reserve’s next move.
Bitcoin (BTC) lost about the same amount and was currently worth $1,787.17.
The move coincided with a fall in United States equities. The Dow was down nearly 300 points while the S&P 500 and Nasdaq Composite dropped about 1 percent each.
On Wednesday, Speaker Kevin McCarthy stated debt ceiling talks are still hung up on spending levels – with eight days to go until the United States is at danger of a default. He likewise stated he believes the negotiating teams could make progress Wednesday.
“Markets opened quite down after being down significantly yesterday, so this may be a reaction to that,” stated David Wells, CEO at Enclave Markets. ” Despite the fact that cryptocurrency is a worldwide market, volumes pick up quite a bit during United States trading hours, so sometimes big cryptocurrency moves are following big equities moves that are macro driven.”
As investors monitor the ongoing debt ceiling negotiations in Washington and investors’ price hike expectations move up, Bitcoin (BTC) has started behaving like a danger investment once more, just as it was starting to trade more in tandem with gold earlier this year.
Bitcoin (BTC) and ether are on pace for their worst 30 days of 2023, down 10 percent and 6%, respectively. Bitcoin (BTC) is down almost 8 percent for the quarter, after finishing the 1st quarter up 71%. Ether is down 2%, after it posted a 52 percent gain in Q1.