When Bitcoin and other cryptocurrencies lost ground again Thursday as the correction from last month’s highs continued amid uncertainty over the impasse in raising the US debt ceiling, which risks dampening sentiment for and draining liquidity from higher-risk assets, crypto price prediction came in handy.
Bitcoin’s price has dropped 2% in the last 24 hours to $26,200, dropping below the lower bound of the $26,500 to $27,500 trading range that has dominated the largest digital asset’s trading range for the previous two weeks. While Bitcoin has increased by about two-thirds this year, it has remained well below the critical $30,000 mark, which it crossed in April for the first time since June 2022 — and has mainly been in a corrective pattern since. With the current trend of losses, a further drop is possible.
“Bitcoin is under pressure as the risk of a U.S. default grows,” said Edward Moya, an analyst at broker Oanda. “Bitcoin remains range bound and should continue to consolidate near the lower boundaries of its downward sloping trading range, with the $25,000 level providing massive support.”
Like the stock market, where the debt limit problem has impacted on the Dow Jones Industrial Average and S&P 500, Bitcoin is expected to continue responding to any big updates on discussions to avert default. Except for other macroeconomic pressures or unexpected causes endogenous to the digital asset industry, these are expected to be the most important short-term drivers for cryptos in crypto price prediction.
Beyond Bitcoin, the second-largest cryptocurrency, Ether, slid 2% to below $1,800. Cardano fell 2% while Polygon rose 1% among smaller cryptos or altcoins. Memecoins were weaker, with Dogecoin and Shiba Inu both losing 2%.