Cryptocurrency prices continued to bleed on Thursday amid macro uncertainties. Bitcoin (BTC) price dropped towards the $26K vicinity today. That comes as market participants panic because of the administration bias in debt ceiling debates.
Meanwhile, Fitch switched the U.S. AAA credit rating to negative as Republicans and President Joe Biden failed to attain bipartisanship on debt ceiling talks. The crypto space stretched this week’s drop, losing more than 2% within the past day.
That saw the global cryptocurrency market capitalization crashing, with leading alts such as Ethereum, Cardano, XRP, Solana, and Polygon threatening to breach their crucial support floors.
Bitcoin’s down day
Investors welcomed the Asian trading day with concerns over the latest macroeconomic woes that have dented the crypto market for nearly two weeks. That has seen Bitcoin plunging to $26.3K, losing around 3% over the last 24hrs.
Source – Invezz.com
The leading cryptocurrency traded within a constricted range before surrendering the $26.5K support on Wednesday. Meanwhile, crypto regulatory worries and the debt ceiling standoff continue to hurt the market. FOMC minutes did little to appease the market as they confirmed differences among the United States central bankers.
Oanda’s Edward Moya commented on Bitcoin’s current trajectory, stating that the crypto maintains range-bound conditions. He added that BTC would consolidate around the lower boundary of its plunging range, with $25K offering stable support.
Potential bullish catalyst
Amidst the current indecision, the Federal Minutes confirms a widespread agreement (within the board) about hiking interest rates. Nonetheless, the committee remained uncertain about rate increases in the upcoming meetings.
Thus, the FOMC would keep monitoring incoming news about the economic trajectory. Moreover, the committee would prepare to fine-tune its financial policy stance amid risks that might prevent the committee from attaining its goals.
That might mean a lucrative atmosphere for Bitcoin and the crypto as macroeconomic uncertainty catalyzed near-term vulnerabilities. Nonetheless, crypto experts remain bullish as far as the long-term outlook is concerned. Investors should follow the latest crypto news for upcoming market direction.
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