Investors starting to panic as cryptocurrency and stocks continue to tumble with no progress on the debt ceiling deal, and FOMC minutes release today. Nothing appearsย to be working for investors asย ofย now as gold price remains flat, Bitcoinย (BTC) price tumbles over 2 percent and the cryptocurrencyย market likewise dropped 2%, and worldwide stock markets sliding on average 1 percent today.
Debt Ceiling Deal: Stock and Cryptocurrency Markets Break Lower
Unitedย States futures to open lower on Wednesday as talks on debt ceiling limit will continue thisย comingย week, with hype related to the Treasury bill market. FOMC minutes release putting additional selling pressure as Fed officials agree to raise interest prices over 6 percent amid higher inflation and a tight jobs market.
Unitedย Kingdom CPI for April dropped to 8.7 percent year-on-year against market expectations of 8.2%, which is well over the Bank of Englandโs 2.0 percent target. The core inflation however jumped to 6.8 percent from 6.2 percent theย previousย 30ย days, dragging the European markets lower. Asian markets likewise closed lower amid concerns surrounding the Chinese market.
Inย theย meantime, the Unitedย States dollar hovers near 2- 30ย days high over worries around the debt ceiling and markets breaking lower. The Unitedย States Dollar Index (DXY) asย ofย now moves over 103.50, marginally higher in the past 24 hours. Theย potential of a pause in June persistsย to decline, according to CME FedWatch Tool.
Treasury Secretaryย Janet Yellen warnedย that the Unitedย States Treasury will run out of funds by June 1. Theย Treasury General Accountย dropped to $57 Billion from $316 Billion earlier in May, with the opening balance of $636 Billion this fiscal year.
Bitcoinย (BTC) to Collapse Below $25K
Veteran trader Peter Brandt warned cryptocurrencyย investors of Bitcoin price probably breaking below $25k to theย following support at $24.8k, with debt ceiling remains to be major concern.
This isย well-known as a pennant or flag and has short term bearish implications unless negated by close over mid point highs. $BTC pic.twitter.com/kLz6aTHMrz
โ Peter Brandt (@PeterLBrandt) May 24, 2023
Bitcoin price trades below $27k, down 2 percent in the past 24hrs. Cryptoย Altcoins including Ethereumย (ETH), XRPย Rippleย (XRP), Cardanoย (ADA), and Polygon likewise dropped over 2%. Memeย Coin coins Dogecoinย (DOGE) and Shibaย Inuย (SHIB) prices shed 3 percent after Elon Musk requested investors not to put all their money in cryptocurrency and Dogecoin.
