Bitcoin in the red amid U.S. debt crisis

The Bitcoin price (BTC) loses more than 2% over 24 hours at approximately 26,200 dollars. The negotiations on the ceiling of the debt at United States had an impact on all financial markets this week.

The price of the market’s leading cryptocurrency briefly dipped below $26,000 overnight before rebounding. This is the second time this month that Bitcoin’s price has headed for the $25k mark. At the time of publishing this article, the token’s price stands at 26,200 dollarsdown 2.2%.

Bitcoin (BTC) 24-hour price – Messari

The digital coin’s decline comes as concern about the risk of a payment default of the debt at US points on financial markets. Against a backdrop of widespread caution, the New York Stock Exchange ended lower on Wednesday, impacted by rising rates and slow progress on debt talks, reports theAFP.

The whole crypto market is in the red this morning. Runner-up Ethereum (ETH) is down 2.6% to under $1800. Binance’s native token, BNBlost 1.5% to 304 dollars.

Bitcoin is under pressure as the risk of a U.S. default increases and the Fed may be in a position to tighten further. Bitcoin is going to be very sensitive to soaring Treasury yields,” commented market analyst Edward Moya, noting that its price should continue to consolidate near the lower limits of its downward-sloping trading range, with $25,000 providing important support.

The Bitcoin price would also be strongly influenced by traders’ operations due to the low market liquidity. “It seems that there is currently liquidity as thin as paper […] any medium-to-large bid pushes the market down,” explained Matthew Dibb of Astronaut Capital earlier this month. Since the collapse of the FTX group and its market maker Alameda, liquidity has indeed fallen drastically.

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The global capitalization of the crypto market this Thursday morning stands at around $1.1 trillion. The Fear & Greed Index, which analyzes trader sentiment, reads “neutral” with a score of 51.

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