• Bitcoin sank below $26.2K on Wednesday due to disappointing U.K. inflation data and the latest FOMC minutes.
• Ether also fell by 2.6% while most major cryptos spent Wednesday firmly in the red.
• The CoinDesk Market Index, a measure of crypto markets performance, dropped 2.8%.
Bitcoin Doldrums Below $26.5K
Bitcoin’s market capitalization sank below $26,200 early Wednesday after disappointing U.K inflation data and the release of the most recent Federal Open Market Committee (FOMC) minutes showed U.S central bankers divided on a continuation of interest rate hikes did little to boost market confidence.. At press time, bitcoin was trading at about $26,440 off roughly 3% over the past 24 hours and near its lowest level since May 12 when it dipped below $26,000.
Investors have been spooked by UK inflation and the latest Janet Yellen warning about the U.S debt ceiling stalemate sending prices reeling on Wednesday . Ruslan Lienkha , chief of markets at fintech platform YouHodler wrote that “increased tension in financial markets” had buffeted equities and digital assets . He said “US stock indexes are under selling pressure by raised concerns about a possible default of the US: With just about 10 days left for authorities to reach some agreement, we have not yet seen any progress in these negotiations” causing financial institutions to restructure assets and prepare for a possible default which puts additional pressure on participants in financial markets .
Low Volume & Volatility
In this period , BTC has been slogging through low trading volume and volatility as markets wrestle with the prospect of a U.S government unable to pay its debts along with ongoing crypto regulatory and macroeconomic uncertainties . Until Wednesday , bitcoin had remained in a $26,500 to $27,500 range . Ether was recently changing hands at about $1,808 , off approximately 2.6% from Tuesday same time . Most major cryptos spent Wednesday firmly in the red with LTC and SOL , tokens of Solana smart contracts platform tumbling more than 5 . 2 % & 3 . 6 % respectively .
CoinDesk Market Index
The CoinDesk Market Index , a measure of crypto markets performance fell 2 . 8 % while The CoinDesk Bitcoin Trend Indicator remained in downtrend territory where it recently dropped – indicating further downward price action likely ahead for bitcoin & other cryptocurrencies alike
Overall sentiment remains bearish throughout cryptocurrency markets as investors remain wary over increasing economic uncertainty & lack of clear progress being made towards resolving US debt ceiling stalemate