Cryptos Decline Ahead Of Debt Ceiling Vote

Waning fears of a debt ceiling crisis dragged cryptocurrencies lower, early on Wednesday. The Bill to raise the debt ceiling is expected to reach the House on Wednesday and the Senate on Thursday so as to be signed in to law before the deadline of June 5. Meanwhile, efforts are on to whip up support for the Bill from all sides of the political spectrum so as to rule out a catastrophic debt default.

The Dollar Index, a measure of the Dollar’s relative strength added 0.24 percent overnight and is currently at 104.41. The day’s trading range was between 104.01 and 104.63.

The Dollar’s demand coincides with data from China that indicated a fall in activity in both the manufacturing and non-manufacturing sectors in the month of May. The disappointing data raised questions about the depth of the post-pandemic rebound in China, triggering a demand for the safe-haven Dollar.

NBS manufacturing PMI dropped to 48.8 from 49.2 earlier, amidst expectations of a jump to 49.4. NBS Non-manufacturing PMI declined to 54.5 from 56.4 in the previous month.

Gold Futures for August settlement surged 0.63 percent in Wednesday’s trade and is hovering close to $1,989 per troy ounce. The day’s trading range was between $1,971.75 and $1,992.25.

Overall crypto market capitalization has dropped to $1.14 trillion, versus $1.16 trillion a day earlier. 6th ranked XRP (XRP) is the only cryptocurrency among the top 25 cryptocurrencies to trade in the overnight positive territory. XRP has gained 2.3 percent in the past 24 hours and 13.5 percent in the past week.

Meanwhile, the probability assigned to a quarter percent rate hike by the Fed in the ensuing review, as implied by the 30-Day Fed Funds futures pricing data sourced from the CME FedWatch tool has fallen to 59.4 percent, from 66.6 percent a day earlier. It stood at 36.4 percent a week earlier.

On an overnight basis, 88th ranked XDC Network (XDC) is the topper, with a rally of 7.8 percent. 56th ranked Conflux (CFX) is the biggest laggard having shed 9.4 percent.

On a weekly basis, 95th ranked SingularityNET (AGIX) which gained 16 percent tops the list. 82nd ranked Pepe (PEPE) which shed 15 percent lags the most.

Over the past 30 days, 82nd ranked Pepe (PEPE) excels with a rally of more than 80 percent. 78th ranked Sui (SUI) is the greatest loser, having declined 79 percent.

On a year-to-date basis, 56th ranked Conflux (CFX) that gained 1190 percent is the best performer. 98th ranked PancakeSwap (CAKE) which has eroded 48 percent is the biggest laggard in 2023.

Bitcoin shed 2.6 percent overnight but is holding on to gains of 2.2 percent in the past week and 62 percent in 2023 to trade at $27,187.71.

Ethereum also declined close to 2 percent overnight to change hands at $1,872.83. Weekly gains add up to 3.4 percent whereas year-to-date gains exceed 55 percent.

BNB (BNB) weakened 1.8 percent overnight and 0.20 percent over the past week.

Bitcoin dominates 46.2 percent of the overall crypto market, followed by Ethereum which commands a 19.8 percent market share. All stablecoins account for 11.4 percent of the overall market leaving the residual alternate coins with a market share of 22.6 percent.

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by Avila SebastianRTTNews Staff Writer

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