Blockchain.com CEO Warns Of Bitcoin, Crypto Selloff After Debt Ceiling Deal – Crypto News – Crypto News
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Blockchain.com CEO Warns Of Bitcoin, Crypto Selloff After Debt Ceiling Deal – Crypto News

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Cryptocurrencies including Bitcoin and Ethereum can witness massive selloffs next week as the US debt default deadline nears, Blockchain.com CEO said on Thursday. Stocks and crypto prices will also fall after a debt ceiling deal as the US Treasury Department expects to issue $700 billion in Treasury bills to make up lost funds this quarter.

US Debt Situation To Bring Crypto Market Correction

During the Qatar Economic Forum organized By Bloomberg, Blockchain.com CEO Peter Smith said US default or recession will also impact crypto initially. However, crypto prices will recover after a short period.

“On a long horizon, these are probably good for crypto…If the US government defaults, we’ll probably see a quick pull-back and then a very strong push upward in the crypto market.”

Smith also agreed that the crypto market is recovering slowly this year and 2024 will be a massive year for crypto Bitcoin halving will happen in April.

Blockchain.com is also considering an expansion of its small Middle Eastern office in Dubai, the United Arab Emirates. Dubai regulators and virtual asset regulations are progressive in crypto adoption. Blockchain.com gained approval from the Virtual Assets Regulatory Authority (VARA) in September.

If the debt ceiling deal between President Joe Biden and Republicans failed, it would be “catastrophic” for the global market. However, if the deal is reached, it will pull liquidity out of financial markets.

Furthermore, the US Federal Reserve to pivot this year. Fed officials are calling for two more hikes as inflation remains high and the job market is still tight.

Also Read: Bitcoin, Crypto Slides As Fitch Puts US Rating Watch Negative On Debt Ceiling Standoff

Bitcoin Price Loses Momentum

btc price fell briefly below the $26k level today as bitcoin investors panic due to political partisanship in debt ceiling talks. Bitcoin fell 2% in the past 24 hours, with the price currently trading at $26,400. Meanwhile, the second largest crypto eth price trades above $1800, after falling to an intraday low of $1763.

Popular analyst Rekt Capital predicts that if Bitcoin loses the $26,200 support then the price would drop into the lower $20,000. The $26200 happens to be confluent support with the 200-week MA.

Bitcoin price. Source: Rekt Capital

Also Read: Binance Suspends Crypto Deposits As Multichain CEO Remains Missing

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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