Traders portrayed an uncertain picture with the US debt ceiling talks dragging on, as crypto sentiments slowed down from being positive just a day earlier.
After a couple of days of staging a remarkable comeback, Bitcoin has slid back below $27000, leaving crypto sentiments with a neutral outlook. While some proponents are still bullish about a comeback, others have expressed their uncertainties regarding the US debt ceiling talks.
Some experts had even claimed earlier that Bitcoin could test the $30000 level with its robust recovery. Unfortunately, it could not consolidate over the level to initiate another rally. Earlier, the US Treasury Secretary had warned of a US debt default in June even as lawmakers from both the Republican and Democratic parties scrambled to negotiate a deal.
The UK emerged as a shining star in the global economy recently when its inflation figures were revealed to have decreased. A recession in the UK is highly unlikely this year. If the UK pauses its interest rate hikes, along with an expected pause from the US Federal Reserve, the crypto market could receive the much-required liquidity it has been lacking recently.
Crypto sentiments amongst other tokens were broadly neutral or slightly negative. ETH was firmly above $1800, while others like Bitcoin, Polygon, and Litecoin witnessed losses. The crypto market’s total capitalization also saw a drop in value in the last 24 hours.
BTC/USD 1D price chart
Bitcoin is currently trading at around $26700 on May 24, 2023, with BTC/USD down by around 2.1% in the previous 24 hours. BTC/USD is trading below its 20-day EMA (27,747.07) as BTC’s 24-hour volume remained above $13.5 billion. Bitcoin has seen around 61.20% returns on a year-to-date basis.