Bitcoin BTC price climbs past $27.2,000 but remains on hold as investors continue watch over debt limit

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Stocks fell, but bitcoin (BTC) continued its sluggishness in Tuesday’s trading.

The largest cryptocurrency by market capitalization was recently trading near $27,200, up 1.1% in the past 24 hours. Bitcoin surged above $27,400 shortly before European stock markets opened. For nearly two weeks, BTC has held between $26,500 and $27,500 as investors worry about ongoing crypto regulatory issues that have undermined market liquidity and macroeconomic uncertainties, including the recent deadlock. of the US debt ceiling.

After the market tumult of 2022, sideways movement felt much better than downward movement, Tim Frost, CEO of digital wealth platform Yield App, joked in an email to CoinDesk, though he added that he felt the crypto markets were stagnating. Right now, we just have existing liquidity moving in different directions, with only true crypto believers and active traders still participating.

Frost noted that the current crypto market capitalization of around $1.3 trillion stalled a year ago. There doesn’t yet appear to be a catalyst on the horizon that could move things in either direction, Frost wrote. The global macroeconomic situation remains uncertain, although more positive, with lower inflation in the US and potentially in the UK and EU in the coming months. At the moment, although there are not many tremors.

The latest reading on US inflation, based on the consumer price index, fell below 5% for the first time since early 2021, although it remains well above the 2% target of the Federal Reserve.

Ether (ETH) also remained within its two-week range, changing hands at $1,850, up around 1.6% 24-hours. Most other major cryptos were in positive territory, but not by much, with APT and SOL, the native tokens of the Solana and Aptos smart contract platforms, recently up 3.8% and 2.1%, respectively. The CoinDesk Market Index, a measure of the performance of crypto markets, recently rose 1.1%.

Stocks fell amid debt limit concerns, with the tech-focused Nasdaq Composite closing 1.2% daily after hitting a 2023 high, and the S&P 500, which has a strong tech component , and the Dow Jones Industrial Average (DJIA) down 1.1% and 0.6%, respectively.

Yields on 2- and 10-year Treasury bills both hit their highest levels since March before falling slightly.

Crypto markets received a modest boon on Monday when a leaked document seen by CoinDesk showed the European Commission’s willingness to moderate a previous tough stance on crypto and make it easier for commercial lenders to hold stablecoins and symbolic assets.

Meanwhile, in an email to CoinDesk, Strahinja Savic, head of data and analytics at Canada-based FRNT Financial, wrote that the correlation between the S&P 500 and bitcoin has dropped since April to -0. ,23.

This disconnect between bitcoin and traditional assets has been a dominant theme that appears to continue into 2023, Savic wrote. As some macro catalysts come to a head, like the debt ceiling debate or Fed rate policy, it will be interesting to see just how much bitcoin has decoupled from the broader market.

Savic also noted that the percentage of total bitcoin supply has remained unchanged for more than a year, hitting a new all-time high of 62.13%. Bitcoin hodlers remain tethered to the asset for now, he wrote.

UPDATE (May 23, 2023, 22:33 UTC): Adds recent CoinDesk market index.

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