Cryptocurrencies were recording some volatility with various uncertainties on the global stage affecting traders’ expectations.
Traders could continue to monitor the developments in the US as the President and Congress continue to negotiate over the debt ceiling issue.
Denys Peleshok, Head of Asia at CPT Markets said, “At the same time, some concerns around the direction of monetary policy could increasingly become a strong factor with the next Federal Reserve three weeks away from now.
“Continued concerns around the debt ceiling in the US could create an opportunity for cryptocurrencies and Bitcoin in particular as the largest asset in this space, especially if discussions drag on as the deadline of June 1st approaches.
The concerns could push certain investors towards cryptocurrencies in a bid to hedge against the risks that could follow a loss of confidence in the US’s ability to secure its financial obligations.
“In the meantime, bitcoin’s prices could remain relatively stationary as traders await the next round of negotiations later today.
“However, comments from both parties could drive some volatility as traders adjust their expectations.
On the other hand, monetary policy remains a potent force for crypto markets and volatility could be fueled by a number of interventions from various Federal Reserve members and other central bankers today and during the week. Traders are considering the nuances of the US monetary policy as a pause in interest rate hikes is expected.
“The publication of the US central bank’s meeting minutes could also move prices to a certain extent as the document could reveal some new information about the US central bank’s position. More aggressive comments from Federal Reserve members could put some pressure on Bitcoin and Ethereum.”