Cryptocurrency jitters; Bitcoin could test the $25,000 mark
By Álvaro Estevez / Alejandra Zamora
Date: Monday 22 May 2023
(Sharecast News) - Cryptocurrencies start the week with trepidation. Bitcoin (BTC) has retreated slightly, dropping 0.8% in the last 24 hours and falling below $26,900. For its part, Ethereum (ETH) follows a similar pattern and drops 0.37% in the last 24 hours to $1,810.
"Bitcoin is managing to hold onto recent gains, having consolidated since falling below $27,000 last week. It had a little wobble on Thursday, falling more than 3% but appears to have regained some composure today. That said, it continues to look a little vulnerable in the short term, with $25,000 the next big test below," stated Craig Erlam, senior market analyst at Oanda.
For his part, Joe DiPasquale, CEO of BitBull Capital, indicated that the reigning cryptocurrency "has corrected to levels between $25,000 and $27,000." "This is where we'd like to see some consolidation before a retest of $30k in the coming days. While the market may not rally in the near term, the price action is following expectations as we witness consolidation during bearish sentiment," he added.
In the crypto space,TORN, the Tornado Cash token, has begun to recover after the organization that manages the protocol was the victim of an attack over the weekend. The attack, which was neither an exploit nor a hack, consisted of a benign-looking malicious proposal, which allowed the attacker to access all governance votes through hidden malicious code.
According to the latest information, the Tornado Cash community is proposing new solutions to reverse the unauthorized code changes and it appears that they are well on their way to doing so. The token´s price has recovered 10% in the last few hours after plunging more than 40% over the weekend.
Separately, Digital Currency Group, parent conglomerate of bankrupt crypto-lender Genesis, has reportedly defaulted on a $630 million payment to Gemini, the crypto exchange founded by the Winklevoss brothers with which it has been in dispute for months. According to a January court filing, Genesis owes more than $3.5 billion to its 50 major creditors.
On the macro scene, the US debt ceiling remains the market's biggest concern, especially after Republicans halted talks last Friday after accusing the White House of being "unreasonable." Today, on Monday, US President Joe Biden and Republican House Speaker Kevin McCarthy meet again to try to unblock the deal.
For her part, the U.S. Treasury Secretary, Janet Yellen, has once again asked both sides to reach an agreement or "we will have to choose which bills will remain unpaid". According to Goldman Sachs, the default date could come somewhat later than on June 1, as Yellen predicts, and be delayed until June 8 or 9. Analysts believe that there will be an agreement, although it will most likely come at the last minute.
In the rest of the market, there have been significant falls in the last day, although most of the major altcoins have risen at this time of the morning.
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