A bearish trend prevailed on Wednesday, putting pressure on stock markets and crypto markets. Risk sentiment fluctuates, causing volatility in risk assets. The ongoing debate around the US debt ceiling is causing economic uncertainty, causing volatility in cryptocurrency prices. Increasing debt fears on Wednesday drove risk sentiment down, putting pressure on cryptocurrencies.
US Treasury Secretary Janet Yellen has warned that the office would not meet all US government obligations by June 1. On Wednesday, Yellen reiterated that the US debt ceiling deadline remains in early June and cannot be extended without the US missing payments. Last week, House Speaker McCarthy and President Biden started talks on the debt ceiling. The two leaders have yet to reach an agreement on the US debt ceiling, but negotiations continue as the clock runs down.
Bitcoin plummeted on Wednesday, dropping to the $26,200 level. If the BTC price declines, support can be found near $26,000, while resistance may be encountered near $27,500. Reports that Tether, the largest asset-backed stablecoin, would invest up to 15% of its net profit into Bitcoin every month boosted Bitcoin.
Ethereum price crushed down to the $1,780 level on Wednesday. If Ethereum's price declines, it may encounter support near $1,740, while if it increases, resistance may be encountered at $1,900.
Reports that Hong Kong would open crypto trading for retail investors boosted cryptocurrencies on Tuesday. Hong Kong's Securities and Futures Commission announced on Tuesday that it would accept applications from exchanges to offer crypto trading to retail investors from June 1. The announcement provided support for major cryptocurrencies on Tuesday, as Hong Kong will only accept tokens with a 12-month track record and substantial market capitalization.
Signs that major central banks are starting to wind down their hiking cycles provide support for risk assets. The Federal Reserve raised interest rates by 25 basis points at its latest monetary policy meeting, bringing the benchmark interest rate to a 16-year high target range of 5.00% to 5.25%. The US Central Bank has signaled that its hawkish policy is coming to an end, boosting risk assets. US Federal Reserve Chair Jerome Powell indicated on Friday that the US Central Bank may pivot towards a more dovish direction.
The minutes of the latest Fed meeting were released on Wednesday, increasing the odds of a pivot in the Fed’s policy direction. According to the FOMC minutes, several Fed members advocated for a pause in rate hikes during the Fed’s last meeting in May.
BTC/USD 1h Chart
ETH/USD 1h Chart
The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.
as a Liquidity Provider
and reliable execution
The website you are now viewing is operated by TopFX Global Ltd, an entity which is regulated by the Financial Services Authority (FSA) of Seychelles with a Securities Dealer License No SD037 that is not established in the European Union or regulated by an EU National Competent Authority.
If you wish to proceed please confirm that you understand and accept the risks associated with trading with a non-EU entity (as these risks are described in the Own Initiative Acknowledgment Form and that your decision will be at your own exclusive initiative and that no solicitation has been made by TopFX Global Ltd or any other entity within the Group.
Don't show this message again
These cookies fall under the following categories: essential, functional and marketing cookies. Marketing cookies may also include third-party cookies.