Bitcoin News

Bitcoin, Crypto Market Crash Looming In June After Debt Ceiling Saga: Bloomberg

Bitcoin and other cryptocurrencies, the stock markets closed Friday on a positive note, with Dow Jones 2.1%.
Published by
Bitcoin, Crypto Market Crash Looming In June After Debt Ceiling Saga: Bloomberg

Positive sentiments started to appear in the global stock and crypto markets after the US House and Senate passed the Biden-McCarthy Debt Ceiling Deal and the U.S. Federal Reserve looking to “skip” interest rate hike in June.

The stock markets closed Friday on a positive note, with Dow Jones 2.1% higher, the S&P 500 added 1.4%, and the Nasdaq gained almost 1%, topping the April 2022 highs. Moreover, the May jobs report came mixed showing hotter-than-expected payrolls, unexpectedly higher unemployment, and a slowdown in annual wage growth.

However, the challenges for the markets are not over, especially for risky assets such as cryptocurrencies. The US Treasury Dept will rebuild its depleted cash balance by issuing an estimated $1 trillion in Treasury bills after the debt ceiling deal.

Citigroup strategists predict Bitcoin (BTC) and Ethereum (ETH) near-term outlook remains bleak as cash reserves in the Treasury General Account fell to $22.89 billion on June 1 from $635.99 billion in March. Crypto assets are vulnerable to higher volatility and weaker returns. Over $1 trillion T-bills sales by the end of the third quarter will drain US dollar liquidity from the financial market, increasing the risks of a recession.

Fiona Cincotta, senior market analyst at City Index said Bitcoin’s support is around $26,500 and a break below $25,000 could result in a crash.

“The problem is the macro backdrop, which is relatively uncertain going forward with recessionary fears. I think what will be looking for to make Bitcoin shine is a nice dovish pivot from the Federal Reserve. That might be the tide where we will see another decent leg higher.”

Also Read: Elon Musk-Linked Robinhood Wallets Moves Over 10 Billion Dogecoin

Advertisement

Bitcoin and Ethereum Price To Fall Massively in June

Bitcoin and Ethereum prices continue to move in a range for the last 30 days due to macro factors, regulatory challenges, and weak technical charts. Also, Bitcoin price risks falling below the key 200-weekly moving average (WMA).

The US treasuries and US dollar have started to move higher, with DXY moving over 104 again. It rose after the Senate passed the debt ceiling deal and President Biden prepares to sign on June 3.

BTC price currently trades near $27,150, moving sideways in the past 24 hours. ETH price jumped above $1900 but remains under selling pressure.

Also Read: Terra Founder Do Kwon Bail Request Approved By Montenegro Court

Advertisement

Share
Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Expert Predicts SHIB Rally as Shiba Inu Restores Shibarium After $4M Hack Shutdown

Shiba Inu’s Layer 2 network, Shibarium, has returned online following a $4 million exploit that…

October 4, 2025
  • 24/7 Cryptocurrency News

FLOKI Makes History With First ETP in Europe as Price Surges 30%

FLOKI has announced the launch of the first BNB chain exchange-traded product (ETP) in Europe.…

October 4, 2025
  • 24/7 Cryptocurrency News

BNB Rally to $1,300 Will Continue As Binance Hits Crucial Q3 Milestone, Says Expert

Binance Coin (BNB), the native cryptocurrency of BNB Chain, has surged another 8% today, moving…

October 4, 2025
  • 24/7 Cryptocurrency News

Trump’s Real Estate Moves On-Chain as Hut8 Adds WLFI Tokens to Boost Treasury

Trump’s real estate portfolio is set to go on-chain amid World Liberty Financial’s announcement of…

October 4, 2025
  • 24/7 Cryptocurrency News

ASTER Token Defies Crypto Market Consolidation With 14% Upside, Expert See Next Stop at $3

Despite the broader crypto market consolidation, ASTER token is outperforming with 14% gains in the…

October 4, 2025
  • 24/7 Cryptocurrency News

MetaMask Gears Up for Major MASK Token Airdrop With Reward Points System Launch

MetaMask, Consensys’ Web3 wallet, is set to introduce a reward points system for on-chain activities.…

October 4, 2025