Bitcoin runs into the same resistance again as money flows out

Bitcoin (BTC) hit $27,000 again last night, but the price has again run into resistance around $27,400 in recent hours. Will the course be rejected here again? Bitcoin tops out at $27,290 on Binance and $25,264 on Bitvavo at the time of writing. This means that the bitcoin price is up 1.7% today. The total market capitalization is $529 billion and the dominance is 46.4%. The Fear & Greed Index comes out at 50 (Neutral).

No debt ceiling deal yet

Currently, talks about the US debt ceiling are gripping the financial markets. Yesterday, President Biden failed to strike a deal with Speaker of the House of Representatives McCarthy.

US Treasury Secretary Janet Yellen has warned once again that if the debt ceiling is not raised, the US will run out of money. The White House even threatens that this could cost millions of jobs and crash stock markets. For the time being, it is assumed that a deal will be closed in time.

Still more rate hikes?

In the past year, interest rate hikes by the Federal Reserve in particular kept the markets in check. Most market participants assumed that the Fed would have finished raising interest rates by now. However, yesterday Jim Bullard of the Fed reported that he may even expect two more hikes this year. According to the CME FedWatch Tool, 20% of the market now expects an increase during the next interest rate decision on June 14. An actual “pivot” now seems far away.

Price fluctuation due to fake news

Yesterday, the price of bitcoin made a small swing due to fake news. A Twitter account shared an AI image of an explosion near the Pentagon and immediately we saw a dip in the markets. Bitcoin then quickly recovered, but it looks like we may be in for some crazy times.

Bitcoin funds are once again seeing outflows

Not only private investors are currently very cautious, this is also reflected among institutional investors. CoinShares’ James Butterfill reports that money is pouring out of bitcoin investment products for the fifth week in a row. It concerns a whopping $32.7 million that was withdrawn from bitcoin funds last week.

Tight range, low volume, but also confidence

Analytics company Glassnode summarizes what we’ve been writing about in recent weeks. Bitcoin has been moving in an extremely tight range for some time now while volume and liquidity are extremely low. Yet long-term investors are still holding on to their bitcoin. The quantities are even reaching new records.

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