Debt Ceiling Situation Can Push Bitcoin Further Below: Analysts 

bitcoin Although positive unemployment and GDP data relieved investors, the fear of debt ceiling issues have kept investors on their toes. 

Debt Ceiling Issues Affect Bitcoin

Issues and fears related to the debt ceiling have kept Bitcoin below $26,500. For almost a long time, Bitcoin consolidated in a range before slipping near the $26K area. Bitcoin, which is the largest cryptocurrency in terms of market capital, has lost some of its early 2023 gains due to macroeconomic doubt and fears. The most prominent reason is the U.S. debt 

Republican House lawmakers along with the White House have been having discussions but both sides staying on the same page and opting for a default still remains uncertain. 

Riyad Carey, a research analyst at Kaiko took to his Twitter and stated that U.S. debt ceiling concerns are weighing heavily on the crypto markets and BTC. He also stated that the crypto markets have been fairly range bound for the past few weeks and there was no crypto-specific catalyst.

He further wrote that he’s not expecting any extraordinary price movement in Bitcoin in the near future and that the next major catalyst is almost a year away and a lot can happen between this. 

Most of the cryptocurrencies have been in faint green recently. Ether was up 0.3% on Wednesday while Polygon’s MATIC was up 2% recently. 

Update on Other Important Indicators

Major indexes of the U.S. including Nasdaq, and S&P500 rose up 1.7% and 0.9% respectively as Nvidia expected higher sales numbers because of recent growth in the Artificial Intelligence Gold rush which recently touched historic highs and has been declining for the past few weeks, currently trading at $1956. 

Most assets across the world were unmoved by the unemployment and GDP data. Thursday’s Job data showed unemployment numbers below the expected 229,000 with an expectation of 245,000. The U.S. GDP also expanded for the third consecutive quarter at 1.3%. 

One of the major media house analysts highlighted that such news a year ago would’ve sent bullish money flow in the digital assets sector but something like that not happening tells a story. 

Brent Xu, CEO and Co-founder of Umee, a Web3 bond-market platform, said that all eyes are on the debt ceiling right now,w and until some solution is not found he doesn’t expect Bitcoin to outperform. He further added that if current conditions prolong we can see BTC and digital assets consolidate or dump a little on the downside. 

Xu further stated that Bitcoin and other digital assets are currently in a spring phase and the current volatility, pullback, and short runs are expected until next year. The halving of Bitcoin is scheduled for next year and Xu believes that when that happens the digital assets will start moving higher. 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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