Hassan Maishera
TL;DR
-
Bitcoin continues to trade below the $27k level as investors weigh the ongoing debt ceiling talks in the United States.
-
The broader crypto market could experience further bearish movements in the near term.
Bitcoin Stays Below $27k
Bitcoin, the world’s leading cryptocurrency by market cap, continues to trade below the $27k level for the second-consecutive day this week.
At press time, the price of Bitcoin stands at $26,884, down by more than 1% over the last 24 hours.
The bearish trend comes as investors continue to weigh the ongoing debt talks in the United States. The US has a debt of over $31 trillion and is expected to break its debt ceiling in the coming days.
Market analysts believe that if that happens, the US could likely default on its loan, and this could result in a recession. Investors in the crypto space and the broader financial market are observing the situation with keen interest, as a recession could affect the markets.
Bitcoin embarked on a mini rally on Thursday but failed to break past the $27,500 resistance level. It began to decline immediately afterward, with the bulls now looking to defend the major support around the $26,400 region.
Edward Moya, a senior market analyst for foreign exchange market maker Oanda, stated that;
“Bitcoin is hovering near its recent lows as investors await regulatory clarity and whether Wall Street believes any use-case arguments will be made anytime soon. This frustrating trading range has turned off many investors, and if the crypto fundamentals don’t improve anytime soon, downward pressure could resume.”
The total cryptocurrency market cap has dropped to $1.12 trillion once again, down by more than 1% in the last 24 hours.
