Digitalย currency prices were trading lower early Wednesday morning alongside worldwide equities as debt ceiling negotiations in the Unitedย States continue to drag on and fears of a possible default grip markets.ย
The price of Bitcoinย (BTC) was trading down 1.86 percent at $26,713 per coin, while ether was trading down 2.14%.ย
European stocks were likewise trading lower, with the Stoxx 600 Index trading down 1.66 percent at 7:13 am EDT. Inย theย meantime, Chinaโs benchmark CSI 300 Index ended the day down 1.38%.
Source: TradingviewAlthoughย while House Speaker Kevin McCarthy informed a โproductiveโ meeting with President Biden on negotiations to raise the debt ceiling and avoid default, itโs not clear to the market if any progress has been made that brings the two sides closer to finalizing a deal. The Unitedย States faces possible default in early June โ a scenario that Treasury Secretary Janet Yellen stated to lawmakers has โhighly likely.โ
As for cryptocurrency, Bitcoinย (BTC) has held up better than most assets, as noted by trading company QCP in a note released Wednesday.ย
QCP alsoย mentionedย that the debt ceiling is โfront and centre of all narrativesโ asย ofย now shaping cryptocurrency markets.ย
โWe believe that the disconnect betwixt Bitcoin holding up vs. other comparable markets, is owingย to investors having learnt from theย pastย few banking crisis that Bitcoin is the best high-beta hedge against a โno-dealโ scenario here,โ the company said.ย
โ Despiteย theย factย that our medium-term bias is for higher BTC, on a deal scenario โ we think Bitcoin could quickly sync back with what other macro markets are implying.โ
โOn a โno-dealโ scenario onย theย otherย hand, we will easily take out the yearโs highs,โ it concluded.
