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.