Bitcoin dropped below US$27,000 on Sunday, dropping further lower on Monday morning in Asia due to ongoing negative macroeconomic trends. All of the top 10 non-stablecoin cryptocurrencies decreased on Monday morning, except for Tron, which saw its price rise. Investors are still considering the effects of the U.S. debt ceiling talks as the Group of Seven summits in Japan ended on Sunday.
Tron’s growth as Bitcoin and Ether decline
Bitcoin’s price was US$26,669 at 9:30 a.m. in Hong Kong, down 1.95% over the previous 24 hours. According to information from CoinMarketCap, this fall resulted in a loss of 1.27% over the last seven days.
According to Markus Thielen, head of research and strategy at Singapore-based cryptocurrency lender Matrixport, bitcoin has not yet responded favourably to data from the U.S. consumer price index (CPI) that was lower than anticipated or to ongoing efforts to lift the debt ceiling.
Jeff Mei, chief operating officer of cryptocurrency exchange BTSE, said, “The largest cryptocurrency by market cap has been trading sideways since March and is unlikely to break US$30,000 anytime soon.” Additionally, while institutional investors are cautiously hedging their bets, the persistent macro uncertainty dampens retail investors’ excitement for “YOLOing” into risk assets.
Ether decreased 0.49% during the previous week and plummeted 1.14% in the last 24 hours to US$1,800.
Solana suffered the most losses in the top 10 non-stablecoin cryptocurrencies. It decreased by 4.22% over the previous 24 hours and lost 6.92% over the previous week.
However, Tron increased by 2.73% over the previous 24 hours to US$0.07464 and 7.47% over the previous week. According to Matrixport’s Thielen, this may be connected to Justin Sun, the founder of Tron, announcing on May 11 that he will start trading memecoins.
Tornado Cash, meanwhile, increased 23.38% over the previous day to reach US$4.62. On Sunday, the coin fell as low as US$3.859 before rebounding.
The token’s price dropped as the weekend’s election appeared to have been rigged, according to the DAO that issued the token, Tornado Cash. The giant cryptocurrency exchange in the world, Binance, said on Sunday that it has temporarily stopped trading the token.
Bitcoin Ordinals are still increasing
The indices serve as proxies for performance indicators for the worldwide NFT market. CryptoSlam, a subsidiary of Forkast, runs them.
In the 24 hrs leading up to 10:30 a.m. in Hong Kong, the Forkast 500 NFT index for the non-fungible token (NFT) market was unchanged at 3,399.6 points. Over the previous seven days, the index increased by 1.77%.
The most popular blockchain for NFTs, Ethereum, had a decrease in NFT sales of 3.96% in the previous day to US$15.1 million. According to data from Cryptoslam, transactions on the Bitcoin blockchain decreased by 18.5% to US$3.54 million.
Over the last day, Ethereum sales on the Mutant Ape Yacht Club collection peaked. Sales increased 1.1% daily to reach US$1.9 million.
The value of sales for “uncategorized Ordinals,” or Ordinals that are not part of a recognized collection, increased by 29% over the previous day to US$960,597 due to the rising popularity of Bitcoin Ordinals.
U.S. stock futures fluctuate as negotiations resume
As of 11:50 a.m. in Hong Kong, U.S. stock futures were trading in a mixed manner as investors continued to weigh the risks associated with the debt ceiling negotiations in the U.S. and the results of the G7 conference over the weekend.
The S&P 500 dipped 0.036%, while the Dow Jones Industrial Average fell 0.1%. Futures for the Nasdaq Composite increased by 0.088%.
Market observers anticipate that U.S. President Biden and Speaker of the House of Representatives Kevin McCarthy will meet on Monday to continue discussing lifting the debt ceiling. A settlement would aid the country in avoiding a potential debt default, which would be disastrous for the U.S. and international markets.
Biden surprisingly brought up Bitcoin during a speech at the G7 conference on Sunday in the Japanese city of Hiroshima.
The plan would “protect wealthy tax cheats and cryptocurrency traders while putting food assistance at risk for nearly a hundred, no, nearly a million Americans,” the president declared.
The president’s remarks provide insight into the continuing debt negotiations between the White House and Congress are bipartisan.
Janet Yellen, the secretary of the U.S. Treasury, reiterated the “hard deadline” of June 1 for raising the debt ceiling in an interview with NBC on Sunday. Failure to do so would erode confidence in American securities as a shelter for investments worldwide, stressed Yellen.
Being unable to pay our payments is not a scenario that is acceptable to her, she stated.
On Monday morning, the People’s Bank of China announced that it has kept its key lending rates stable for the ninth consecutive month, keeping the prime rate for one-year loans at 3.65% and the rate for five-year loans at 4.3%.