Bitcoin, Ethereum slide as debt ceiling talks weigh on investors

Cryptocurrencies fell along with stocks on Wednesday as investors worried about the debt ceiling and the Federal Reserve’s next move.

bitcoin Bitcoin fell more than 3 percent to $26,207.42, according to Coin Metrics. ether About the same amount was lost, trading at $1,787.17.

This move coincides with U.S. stocks fall. The Dow fell nearly 300 points, while the S&P 500 and Nasdaq Composite both fell about 1%.

On Wednesday, the Speaker of the House Kevin McCarthy Say debt ceiling talks are still hung up On the level of spending – eight days until the US is at risk of default. He also said he believed the negotiating team could make progress on Wednesday.

“Markets opened sharply lower after yesterday’s sharp drop, so this could be a reaction to that,” said David Wells, CEO of Enclave Markets. Volumes picked up quite a bit during the session, so sometimes big moves in crypto come after big macro-driven moves in stocks.”

As investors focus on ongoing debt ceiling talks between Washington and Fed officials Divided into Regarding the direction of rate hikes, Bitcoin is starting to act like a risk asset again, just as it started trading in tandem with gold earlier this year.

Bitcoin and ethereum are on track for their worst month of 2023, down 10% and 6%, respectively. Bitcoin fell nearly 8% this quarter after rising 71% in the first quarter. Ether fell 2 percent after rising 52 percent in the first quarter.

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