Blockchain.com CEO warns against bitcoin, crypto sales after debt ceiling deal
[gpt3]rewrite
Cryptocurrencies including Bitcoin and Ethereum could witness massive selling next week as the debt default deadline nears, Blockchain.com CEO said on Thursday. Stocks and crypto prices will also fall after a deal on the debt ceiling as the US Treasury expects to issue $700 billion in Treasury bills to make up for lost funds this quarter.
US debt situation to bring crypto market correction
During the Qatar Economic Forum organized by Bloomberg, Blockchain.com CEO Peter Smith said that the US default or recession will also affect crypto initially. However, crypto prices will recover after a short period of time.
“On a long horizon, these are probably good for crypto… If the US government defaults, we will likely see a quick pullback and then a very strong upward push in the crypto market.”
Smith also agreed that the crypto market is slowly recovering this year and 2024 will be a massive year for the crypto-Bitcoin halving to happen in April.
“I think the crypto market is going to be much bigger in the future than it is today,” @blockchain‘s @OneMorePeter #QatarEconomicForum #منتدى_قطر_اليكستادي @jennzaba pic.twitter.com/WneSNQr6iV
— Bloomberg Live (@BloombergLive) 25 May 2023
Blockchain.com is also considering an expansion of its small Middle East office in Dubai, United Arab Emirates. Dubai regulators and virtual asset regulations are progressive when it comes to crypto adoption. Blockchain.com received approval from the Virtual Assets Regulatory Authority (VARA) in September.
If the debt ceiling deal between President Joe Biden and the Republicans failed, it would be “catastrophic” for global markets. However, if the deal is concluded, it will draw liquidity out of the financial markets.
Also, the US central bank will fluctuate this year. Fed officials are calling for two more hikes as inflation remains higher and the labor market remains tight.
Also read: Bitcoin, crypto slide as Fitch sets US rating Look negative on debt ceiling standoff
Bitcoin price is losing momentum
BTC price briefly fell below the $26k level today as Bitcoin investors panic over political bias in debt ceiling talks. Bitcoin fell 2% in the last 24 hours and the price is currently trading at $26,400. Meanwhile, the second largest crypto ETH price is trading above $1,800, after falling to a low of $1,763 during the day.
Popular analyst Rekt Capital predicts that if Bitcoin loses the $26,200 support, the price will fall to the lower $20,000s. $26200 happens to be coinciding support with the 200-week MA.
Also Read: Binance Suspends Crypto Deposits As CEO Of Multiple Chains Remains Missing
The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.
[gpt3]
