Debt Ceiling Bill Passes Lower House, Bitcoin Continues to Retreat Overnight

(as of 2:30 AM UTC, June 1, 2023) 

Overnight, Bitcoin (BTC) has hovered just above the US$27,000 mark, after seeing slow price decreases day after day this week. While Ethereum (ETH), sitting at US$1,873 at the time of writing, has seen a 1.13% price drop in the last 24 hours, it has followed a different pattern, and has exhibited both positive and negative fluctuations in price, as well as a less dramatic dive in price when compared to Bitcoin (BTC) since Monday.

Meanwhile, traders in Asia today woke up to some good news for the United States’ economy, as the bill to raise the debt ceiling in the country passes its first trial in the house of representatives with overwhelming support. While it still is yet to face its next vote in the senate, this positive macroeconomic movement has caught the attention of both crypto and traditional investors. 

In the same country, top Federal Reserve official Loretta Mester said in a quote to the Financial Times last night that ‘there is no reason to wait [to raise interest rates]’ – expressing her opinion that as inflation continues to rise, the Fed must continue to take measures, including raising interest rates, to combat it. Her comments are seen by many analysts as the part of the cause of BTC’s drop in price following, and raise fears of another interest rate hike amongst continued high inflation in the US. 

As Bitcoin (BTC) continues to waver, investors wait to see whether the cryptocurrency manages to settle at the US$27,000 benchmark, or if further dives in price are coming for the coin. As always, time will tell. 

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