Bitcoin
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Yesterday, the price of Bitcoin fell during afternoon trading in Asia along with all the other top 10 cryptocurrencies. Fitch Ratings has placed America’s AAA rating under watch, citing growing fears that the government could default on its payments as talks to raise the $31.4 trillion debt ceiling stalled. We consider the news and forecast of Bitcoin in the article.
Bitcoin fell 1.93% to $26,214. Regulatory uncertainty leading to the exit of market makers from the crypto business, the ongoing banking crisis due to high interest rates and the debt ceiling debate are forcing investors to take less risk and not invest in cryptocurrencies.
What else led to the decline in the price of Bitcoin
A stronger dollar also seems to have dampened investor appetite for Bitcoin. Yesterday, the US dollar index (DXY) rose to its highest level in two months. Interestingly, the index is up 3.2% from its April low, which is contrary to Bitcoin’s trend over the same period. The recovery of the dollar gained momentum due to its reputation as a safe haven amid market uncertainty caused by protracted US debt negotiations.
Yields on short-term Treasuries have also risen sharply across the board, with the 1-year bond offering its holders a 5.26% yield to maturity. This is a few basis points short of a 23-year high, theoretically reducing demand for assets like Bitcoin in the short term.
According to a weekly report from CoinShares, Bitcoin funds witnessed over $100 million in capital outflows in May. However, from a technical standpoint, Bitcoin maintains its bullish trend, holding above the 200-week exponential moving average (200-week EMA; blue wave in the chart below) around $25,200.
Weekly BTC/USD price chart. Source: Trading View
A bounce off wave support could see BTC price at $30,000-$31,000 as the next upside range.
News and forecast: what will be the price of Bitcoin in the short term
Against such an uncertain background, the price of Bitcoin is unlikely to rise to 27,000 anytime soon. The forecast of Bitcoin is as follows – the Bitcoin rate will be within the range of 26,000 -27,000 dollars.
Author: Vadim Gruzdev, analyst Freedman Сlub Crypto News
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