With the market’s liquidity decreasing due to uncertainties arising from a possible US debt default, crypto forecasts haven’t been optimistic.
The crypto market continued to reel under unpredictable circumstances due to the US debt crisis, with many investors and traders hesitant to go long on crypto. Analysts have yet to be bullish on short-term crypto forecasts, with Bitcoin stuck in a tight trading range for the last few days.
On the positive side, its support above $26000 has also not given away, which could indicate that bulls were desperately waiting for some favorable news out of the debt ceiling negotiations in the US. Although experts were confident of a deal between the US Congress and the government on a deal, financial markets could react either way.
Liquidity has been tight in the crypto market, due to which altcoins haven’t received room for upward movements. While ETH was flat, just above $1800, others like Polygon, Dogecoin, XRP, and Cardano were stagnant near their earlier positions.
The crypto market’s capitalization was supported at $1.19 trillion, witnessed by a 1% upward move in the last 24 hours. Traders were in for a pleasant surprise when the Federal Reserve Chair announced there might be a pause on the interest rate hikes in June, which could boost the crypto forecasts shortly.
BTC/USD 1D price chart
Bitcoin is currently trading at around $26900 on May 21, 2023, with BTC/USD up by around 0.1% in the previous 24 hours. BTC/USD is trading below its 20-day EMA (27,897.68) as BTC’s 24-hour volume was over $13 billion. Bitcoin has recorded around 61% returns on a year-to-date basis.