The largest digital token added as much
3.2% on Monday and was trading at $28,182 as of 9:32 a.m. in Singapore,
oscillating around its 50-day moving average. Smaller tokens ranging from Ether
to Binance Coin also posted gains.
The debt-ceiling deal between President Joe
Biden and House Speaker Kevin McCarthy has helped risk appetite in global
markets. But the agreement still has to clear Congress quickly to avert a US
default. A recent jump in Treasury yields and bets on more USA monetary
tightening are other potential headwinds.
“This morning’s positive risk sentiment
directly relates to the resolution of the debt-ceiling impasse,” said John
Toro, head of trading at digital-asset exchange Independent Reserve. “Front-end
funding costs remain highly elevated relative to crypto returns, resulting in
negative carry for long holders. This will continue to prove a headwind for
risk assets and the crypto complex.”
Bitcoin is on a five-day streak of gains —
its best stretch since March — alleviating a challenging quarter due to poor
liquidity and a US crackdown.
Crypto markets have partially rebounded in
2023 from a rout last year that led to blowups such as the collapse of the FTX
exchange. But they remain well off record highs, including Bitcoin’s all-time
peak of almost $69,000 in 2021.
“It is possible the sheer relief of a debt
deal will bring traders back to the table and trigger the next big leg-up in
the price of Bitcoin,” said Tommy Honan, head of market analysis at crypto
exchange Swyftx.
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