US debt situation pulls down Bitcoin below $27000

Macroeconomic conditions facing grave concerns in the next few days in view of the US debt situation has affected the crypto market negatively.

The US debt situation isn’t yielding any concrete results for now, sending the crypto market into an uncertain frenzy on the last day. Bitcoin faced a mini sell-off and retracted below $27000, while most other crypto tokens lost their earlier gains as well.

While talks on the current situation had made progress, there were no significant results in the last 24 hours, which has sent anxious signals across financial markets. The results of the talks could move either way, according to experts. President Biden had earlier canceled his trip to Australia for the Quad Summit owing to the US debt situation.

Bulls had hoped for Bitcoin to cross the $27500 threshold within this week, but bears took over the crypto market late on May 18, sending Bitcoin below $26500. Fortunately, the crypto has recovered slightly and looks set on a course for recovery.

XRP was the lone gainer amongst all major crypto tokens in the last 24 hours. It rose by over 3% while all its peers were in the red. ETH is still hanging over $1800, while its seven-day average return is almost neutral without any gains or losses. Bitcoin’s market capitalization has been stagnant at $531 billion for the last few days.

BTC/USD 1D price chart

Bitcoin is currently trading at around $26800 on May 19, 2023, with BTC/USD down by around 1.9% in the previous 24 hours. BTC/USD is trading below its 20-day EMA (27,897.86) as BTC’s 24-hour volume stayed over $13 billion.

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