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).
Bitcoin Fear and Greed Index is 50 ~ Neutral
Current price: $26,853 pic.twitter.com/6GCEVT8Ctf
— Bitcoin Fear and Greed Index (@BitcoinFear) May 23, 2023
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.
#FireCharts show that moment the market bought the rumor that @POTUS and @SpeakerMcCarthy are going to reach a deal on the #DebtCeiling #BTC pic.twitter.com/dulYZI4HTI
— Material Indicators (@MI_Algos) May 23, 2023
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.
Two more interest rate hikes are needed this year according to Federal Reserve Bank of St. Louis President James Bullard pic.twitter.com/vIuE6spbx6
— Barchart (@Barchart) May 23, 2023
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.
An AI image of an explosion near the Pentagon caused the market to sell off violently for a few minutes before it was debunked and removed.
Run it back. pic.twitter.com/xP82HCBmys
— KALEO (@CryptoKaleo) May 22, 2023
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.
5th Consecutive week of crypto outflows of US$32m, poor sentiment focused on BTChttps://t.co/55HiQejp0o
— James Butterfill (@jbutterfill) May 22, 2023
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.
The Bitcoin market has traded within an extremely tight price range this week, whilst on-chain volumes have been extremely light, hovering around cyclical lows.
Meanwhile, large swathes of the coin supply remain dormant in investor wallets with supply in several key age bands… pic.twitter.com/t2h5v5YnCT
— glassnode (@glassnode) May 22, 2023
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