24 May 2023 13:41, UTC
Reading time: ~2 m
Investors starting to panic as crypto and stocks continue to tumble with no progress on the debt ceiling deal, and FOMC minutes release today. Nothing seems to be working for investors at the moment as gold price remains flat, Bitcoin price tumbles over 2% and the crypto market also fell 2%, and global stock markets falling on average 1% today.
Debt Ceiling Deal: Stock and Crypto Markets Break Lower
US futures to open lower on Wednesday as talks on debt ceiling limit will continue this week, with hype related to the Treasury bill market. FOMC minutes release putting additional selling pressure as Fed officials agree to raise interest rates over 6% amid higher inflation and a tight jobs market.
UK CPI for April fell to 8.7% year-on-year against market expectations of 8.2%, which is well above the Bank of England’s 2.0% target. The core inflation however jumped to 6.8% from 6.2% last month, dragging the European markets lower. Asian markets also closed lower amid concerns surrounding the Chinese market.
Meanwhile, the US dollar hovers near 2-month high over worries around the debt ceiling and markets breaking lower. The US Dollar Index (DXY) currently moves above 103.50, marginally higher in the past 24 hours. The probability of a pause in June continues to decline, according to CME FedWatch Tool.
Treasury Secretary Janet Yellen warned that the US Treasury will run out of funds by June 1. The Treasury General Account fell to $57 billion from $316 billion earlier in May, with the opening balance of $636 billion this fiscal year.
Also Read: Elon Musk Asks “Not To Bet On Crypto And Dogecoin”
Bitcoin to Crash Below $25K
Veteran trader Peter Brandt warned crypto investors of BTC price probably breaking below $25k to the next support at $24.8k, with debt ceiling remains to be major concern.
This is known as a pennant or flag and has short term bearish implications unless negated by close above mid point highs. $BTC pic.twitter.com/kLz6aTHMrz
— Peter Brandt (@PeterLBrandt) May 24, 2023
BTC price trades below $27k, down 2% in the past 24hrs. Altcoins including Ethereum, XRP, Cardano, and Polygon also fell over 2%. Meme coins Dogecoin and Shiba Inu prices shed 3% after Elon Musk asked investors not to put all their money in crypto and Dogecoin.
Also Read: Terra Classic Developer L1TF To Work On USTC Repeg To $1 After Parity Upgrade
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