Crypto Now Bracing for a $1.1 Trillion Panic After Bitcoin and Ethereum Price Surge

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BitcoinBTC, ethereum and other major cryptocurrencies cheered a US debt ceiling deal, despite President Joe Biden’s crypto warning.

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The price of bitcoin returned to $30,000 per bitcoin, hitting its highest level since early May, with the price of ethereum following suit amid rumors of a possible Chinese-led crypto price hike.

Now, with a deal all but done to avert a ‘catastrophic’ US debt default, markets are watching nervously at what JPMorgan analysts estimate to be the issuance of nearly $1.1 trillion in new Treasuries. , potentially sucking hundreds of billions of dollars from the market.

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MORE FORBES Biden Will Kill Him Eventually – A Serious Crypto Warning Could Mean Chaos For The Price Of Bitcoin And Ethereum As Debt Ceiling Agreement Is ReachedBy Billy Bambrough

Bitcoin, Ethereum and crypto traders are nervously eyeing what could be a $1.1 trillion price… [+] bomb.

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“Our concern is that if liquidity starts to leave the system, for whatever reason, it creates an environment in which markets are prone to crashes,” Alex Lennard, chief investment officer at the fund manager, told Reuters. Ruffer’s global assets.

Mike Wilson, equity strategist at Morgan StanleyMS, added that the huge Treasury bond issue, designed to fill empty US Treasury coffers “is actually going to suck a whole lot of liquidity out of the market and could serve as a catalyst for the correction we had planned.”

Meanwhile, economic data released this week could trigger further interest rate hikes from the Federal Reserve after the Fed’s historically rapid rise in power over the past year as it battles higher inflation. stiffer than expected.

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MORE FROM FORBELon Musk has issued a crypto warning after a $2 trillion crash in Bitcoin, Ethereum and CryptoBy Billy Bambrough

The price of bitcoin has evolved tremendously over the past few years, dragging with it the price of ethereum, because… [+] traders pile up and then flee the crypto market.

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“The debt ceiling issue may soon be a thing of the past, but the future trajectory of the fed funds rate will continue to weigh on market sentiment and Bitcoin’s weekend rally may be hampered based on the economic data series. forecast for this week, such as ISM making the PMI and Mays jobs report,” Yuya Hasegawa, crypto market analyst at Tokyo-based Bitbank, said in an emailed note.

On Friday, the latest U.S. nonfarm payrolls data will shed light on the Federal Reserve’s attempts to cool the scorching job market. Economists predict a gain of 180,000 jobs, compared to just over 250,000 jobs added in April. Unemployment is expected to rise slightly to 3.5% from 3.4% in April.

“Last month’s economic data indicated the resilience of the US economy,” Hasegawa added. “Importantly, the core indices for the CPI and PCE, as well as the average PCE inflation rate for April showed no significant improvement. number continues to rise, this will likely be a headwind for bitcoin and other cryptocurrencies.”

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