NounsDAO on the Brink of Treasury Division Split Amidst 'Rage Quit' Uprising by NFT Holders

MicroStrategy's Significant Bitcoin Impairment Losses May Mislead: Berenberg

CFTC Initiates Enforcement Sweep Targeting Opyn and Other DeFi Operations

Bitcoin (BTC) extended its slight decline on Tuesday, dipping below the $27,000 level, as investors remained vigilant amidst the debt ceiling negotiations taking place in Washington.

Based on CoinCryptoUs data, the largest cryptocurrency in terms of market capitalization was recently valued at $26,950, registering a modest 1.3% decline for the day. Over the past 24 hours, BTC's price has remained range-bound, oscillating between $26,800 and $27,400.

Bitcoin price chart showed that the cryptocurrency's price hovered below $27,000 on Tuesday.

Despite Treasury Secretary Janet Yellen's cautionary statement about the United States potentially surpassing its debt limit by June 1, with the risk of a default that could trigger a recession, a number of analysts hold the belief that resolving the debt ceiling matter could potentially have a positive impact on bitcoin.

“The current macroeconomic situation is, in our view, conducive for increased crypto adoption,” Joe DiPasquale, CEO of crypto fund manager BitBull Capital, told CoinDesk in an email. “The debt ceiling getting raised also bodes well for risk assets as market participants seek to secure wealth,” he added.

Lucas Outumuro, the head of research at blockchain analytics firm IntoTheBlock, suggested that there could be a considerable surge in interest for BTC, irrespective of the outcome of the debt ceiling negotiations.

Outumuro sees the impact of these negotiations and the ongoing bank crisis as similar: “They both highlight the weaknesses of the system and create doubts about their long-term sustainability, thus creating demand for potential alternatives like crypto.”

On Tuesday, Ether (ETH), the second-largest cryptocurrency in terms of market capitalization, experienced a minor decline of 0.2%, trading at approximately $1,820. Meanwhile, LDO, the governance token for the liquid staking platform Lido, extended its previous day's gains by rising an additional 3%. Conversely, the native token of Layer 2 blockchain Polygon, MATIC, faced a decrease of 2.8%, hovering around $0.82 cents.

The CoinDesk Market Index (CMI), a metric used to gauge the overall performance of the cryptocurrency market, recorded a 1.1% decrease during the day.

On Tuesday, the equity markets concluded on a downward note, as the Dow Jones Industrial Average (DJIA) experienced a 1% decline, the S&P 500 dropped by 0.6%, and the technology-focused Nasdaq index recorded a slight decrease of 0.2%.

In the bond markets, there was an increase of 6 basis points in the 2-year Treasury yield, reaching 4.08%. Similarly, the 10-year Treasury yield saw a rise of 3 basis points, reaching 3.54%.

Source Coindesk