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 appears to be working for investors as of now as gold price remains flat, Bitcoin (BTC) price tumbles over 2 percent and the cryptocurrency market likewise dropped 2%, and worldwide stock markets sliding on average 1 percent today.
Debt Ceiling Deal: Stock and Cryptocurrency Markets Break Lower
United States futures to open lower on Wednesday as talks on debt ceiling limit will continue this coming 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.
United 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 England’s 2.0 percent target. The core inflation however jumped to 6.8 percent from 6.2 percent the previous 30 days, dragging the European markets lower. Asian markets likewise closed lower amid concerns surrounding the Chinese market.
In the meantime, the United States dollar hovers near 2- 30 days high over worries around the debt ceiling and markets breaking lower. The United States Dollar Index (DXY) as of now moves over 103.50, marginally higher in the past 24 hours. The potential of a pause in June persists to decline, according to CME FedWatch Tool.
Treasury Secretary Janet Yellen warned that the United States Treasury will run out of funds by June 1. The Treasury General Account dropped to $57 Billion from $316 Billion earlier in May, with the opening balance of $636 Billion this fiscal year.
Bitcoin (BTC) to Collapse Below $25K
Veteran trader Peter Brandt warned cryptocurrency investors of Bitcoin price probably breaking below $25k to the following support at $24.8k, with debt ceiling remains to be major concern.
This is 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
— Peter Brandt (@PeterLBrandt) May 24, 2023
Bitcoin price trades below $27k, down 2 percent in the past 24hrs. Crypto Altcoins including Ethereum (ETH), XRP Ripple (XRP), Cardano (ADA), and Polygon likewise dropped over 2%. Meme Coin coins Dogecoin (DOGE) and Shiba Inu (SHIB) prices shed 3 percent after Elon Musk requested investors not to put all their money in cryptocurrency and Dogecoin.