Bitcoin (BTC) Slumps as US Dollar Witnesses Strongest Week Since February Amid Upcoming Debt Ceiling Face-Off

Bitcoin (BTC) and a lot of the crypto market witnessed a transfer to the draw back because the US greenback registered its strongest week in months.

The US greenback index (DXY) rose 0.6% on Friday and 1.44% prior to now 5 days, based on MarketWatch.

The DXY additionally crossed above its 50-day simple moving average (SMA) after buying and selling beneath the important thing technical indicator since March.

Bitcoin, in the meantime, dropped 2.42% prior to now 24 hours and almost 10% prior to now week. The highest-ranked crypto asset by market cap is buying and selling at $26,889 at time of writing.

Equities additionally went down this week, with the S&P 500 Index down 0.16% prior to now day and 0.44% prior to now 5 days.

The retracements seen in risk-on belongings similar to shares and crypto come amid the US authorities’s upcoming debt ceiling face-off.

Final month, Home Republicans handed a invoice to lift the debt ceiling by $1.5 trillion, on the situation that President Joe Biden additionally indicators off on deep spending cuts.

Biden, nevertheless, reportedly said that he is not going to have interaction in spending negotiations which can be married to the debt ceiling, which at the moment sits at $31.4 trillion.

On Tuesday, the President reportedly met with Speaker of the Home Kevin McCarthy, Minority Chief Hakeem Jeffries, Senate Majority Chief Chuck Schumer and Minority Chief Mitch McConnell within the White Home to speak concerning the subject, although they made little progress in negotiations.

A follow-up assembly scheduled for Friday was postponed till subsequent week, NBC Information reports.

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Earlier this week, U.S. Treasury Secretary Janet Yellen warned that the US will tumble into an “financial calamity” if Congress fails to lift the debt ceiling. She additionally projected that the federal government will run out of money someday in early June if the debt ceiling subject isn’t handled.

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