In the early morning trade of the Asian hours on Monday, May 29, Bitcoin (BTC) made a swift move to the north jumping by more than 3.5%. This happens as the US prepares to raise the debt ceiling further from the current $31.4 trillion.
As of press time, Bitcoin (BTC) is trading 3.5% up at a price of $28,053 and a market cap of $542 billion. Along with BTC, Ether (ETH) and other top-performing altcoins have also shown a strong move gaining over 3% recently.
The probability of the deal of raising the debt ceiling between President Joe Biden and House Speaker Kevin McCarthy, has served as a catalyst to the global market. However, the agreement still has to clear through the US Congress very soon in order to avoid any potential default.
Also, the surge in Treasury Yields as well as the bets on US monetary tightening are also some of the potential headwinds ahead. Speaking to Bloomberg on the current development, John Toro, head of trading at digital-asset exchange Independent Reserve said:
“This morning’s positive risk sentiment directly relates to the resolution of the debt-ceiling impasse. Front-end funding costs remain highly elevated relative to crypto returns, resulting in negative carry for long holders. This will continue to prove a headwind for risk assets and the crypto complex.”
On-Chain Bitcoin Developments
After facing some strong selling pressure for a while, Bitcoin is witnessing a five-day streak of gains, its longest stretch since March. This year of 2023 so far has been fruitful for crypto investors after a major winter last year in 2022.
On-chain data also shows that the address activity for Bitcoin is currently on a rebound after hitting fresh lows earlier this month. The BTC address activity has now surged to a 3-week high.
The report notes: “May’s concerningly low #Bitcoin address activity is finally starting to rebound again. Increasing utility is necessary for #crypto assets to enjoy sustained rallies. Keep an eye on whether $BTC can head into June with 1M or more daily active addresses”.
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