Bitcoin (BTC) and most of the crypto market witnessed a downward move as the US dollar recorded its strongest week in months.
The US dollar index (DXY) rose 0.6% on Friday and 1.44% over the past 5 days. Market overview.
The DXY also stuck above his 50-day simple moving average (SMA) after trading below the leading technical indicator since March.
Bitcoin, meanwhile, fell 2.42% in the past 24 hours and nearly 10% in the past week. The top-ranked crypto asset by market capitalization is trading at $26,889 at the time of writing.
Stocks also fell this week, with the S&P 500 index Down 0.16% in the past day and 0.44% in the past five days.
The retracements seen in risky assets like stocks and crypto come amid the impending confrontation of the US government’s debt ceiling.
Last month, House Republicans passed a bill to raise the debt ceiling by $1.5 trillion, provided President Joe Biden also agrees to significant cuts.
However, Biden reportedly said that he will not engage in spending negotiations tied to the debt ceiling, which currently stands at $31.4 trillion.
This was reported by the president on Tuesday Met with Speaker of the House Kevin McCarthy, Minority Leader Hakeem Jeffries, Senate Majority Leader Chuck Schumer and Minority Leader Mitch McConnell at the White House to discuss the issue, though they made little progress in negotiations.
A follow-up meeting scheduled for Friday was postponed until next week, NBC News reports reports.
Earlier this week, US Treasury Secretary Janet Yellen warned that the US will face “economic disaster” if Congress fails to raise the debt ceiling. She also predicted that the government will run out of money sometime in early June if the debt ceiling problem is not resolved.
Don’t Miss Out – Subscribe to receive crypto email alerts delivered straight to your inbox
Check price action
follow us on Twitter, Facebook And Telegram
Surf the Daily Hodl mix
Image generated: Midway through the journey
Shutterstock/Chuenmanuse
