. Bitcoin Shifts Focus Amid Debt Ceiling Challenges - 29 May 2023

Bitcoin Shifts Focus Amid Debt Ceiling Challenges

Bitcoin Shifts Focus Amid Debt Ceiling Challenges

29 May 2023

Beyond debt ceiling challenges, Bitcoin turns its focus to other serious problems

Market Scenario

As institutional investors in Europe and America prepare to take a long weekend, the news of the debt ceiling agreement caused a natural increase in interest in Bitcoin among ordinary investors.

At the opening of Monday’s Asian session, bitcoin traded as high as $28,4K, but by the start of European trading, it had dropped to $27,8K. Since the 25th, the top cryptocurrency has been increasing every day, bouncing back from a support level of $25.8K, which is close to the 200-week moving average.

This action appears to be a withdrawal by speculators. The market’s focus, however, may change to topics that are more important to the market, such as decreasing economic growth and high-interest rates.

To resume a medium-term uptrend, the bulls are currently attempting to get Bitcoin back above its 50-day moving average. While remaining lower would be a reason to sell on the upside, the possibility to close the day above $28.15 could entice more buyers to Bitcoin.

News context

  • Christy Goldsmith Romero, a commissioner of the Commodity Futures Trading Commission (CFTC), declared that she is prepared to work with the US Securities and Exchange Commission (SEC) to regulate the cryptocurrency market.
  • Users of the cryptocurrency exchange Tornado Cash have filed a lawsuit against the US Treasury Department, claiming that the US Constitution is violated by the Treasury’s decision to punish the company.
  • The regulator will not have access to the personal information of digital euro holders (CBDC), according to ECB board member Fabio Panetta. He emphasized the necessity to strike a balance between protecting privacy and preventing the financing of terrorism.
  • According to Paolo Arduino, CTO of Tether, the company’s high profitability allows it to expand into new markets. In the first quarter, Tether’s net profit increased by double to $1.48 billion.