"It seems like it's going up a bit this morning, but I don't know if it's going to come down after this."
The price of the mother of all cryptocurrencies Bitcoin (BTC) saw a drop back below the $27,500 level as investors turned their attention to the issue of the debt ceiling negotiations in Washington.
Although Treasury Secretary Janet Yellen said the United States (US) will breach the debt limit as early as June 1, adding that a default* could trigger a recession, some analysts believe the resolution of the debt ceiling issue could have a positive impact on BTC.
*Failure to make required interest or principal repayments on the debt
According to Joe DiPasquale, Chief Executive Officer (CEO) of Bitbull Capital stated that the raised debt ceiling can bode well for risky assets such as crypto as investors will go all out to generate profits.
While the crypto market including BTC also fell when bankrupt digital asset lender Celsius was seen transferring a large amount of crypto while Lido opened redemptions** for stETH tokens on May 16 yesterday.
**Investors are given the option to “redeem” their digital assets in exchange for cash proceeds
In addition, the US Securities and Exchange Commission (SEC) asserting that they are not responsible for explaining which tokens are eligible to be defined as securities to Coinbase is one of the reasons for the crypto market's slide.
Following that, many investors believe the SEC may not establish a strong crypto legal framework in contrast to the Mica law, which was just approved by the EU Council today.
After plunging to $26,900, BTC price is now up by 0.70% at $27,099 in the last 24 hours with a market cap of $525 billion but is still down 2.37% over the last week.
