Bitcoin's price has fallen below $27,000 amid ongoing debt ceiling discussions in Washington, D.C. and regulatory uncertainties. The largest cryptocurrency was recently trading around $26,700, a 2.1% decrease within 24 hours. Ethereum also followed a similar downward trend. Market analysts have suggested that Bitcoin's trading range has frustrated investors and may lead to further downward pressure if crypto fundamentals do not improve. Meanwhile, focus is shifting towards Bitcoin's 2024 halving cycle, which typically signals a bull market in crypto.
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What do you think happens next?
I think the main reason behind this downtrend is not due to the ongoing debt ceiling in DC. Because when we look further away, we can see, it is in the benefit of crypto. Because, this will ultimately bring more money into the BTC, which will increase the Dominance plus demand of the BTC. Why demand will be incremented? Due to this debt ceiling issue, if collided with the current Banking crisis issue then it will definitely increase the number of bankruptcies of different banks. This in a result, encourages people to withdraw their assets from it and to put it in another source that has more better options that can not be affected by national debt risk and you know which source has that ability.
"It is BTC Because it has an independent monetary mechanism that can not be burdened with a debt ceiling as it is decentralized and the debt ceiling is more likely centralized (increase by the Voting system). Well, i know, i have stated the good side of it but it will also have a bad impact on BTC which you just aforementioned but forget to write the theoretical reason behind it.
Which is, to meet this pressure of the debt ceiling, the US will make such fiscal theatre that will slow down the US economy and we all know that this will put pressure on BTC too. Well, it's a good thing you mentioned this issue, because i did not see it coming. Thanks.
