Sunny weather with a few scattered clouds lies ahead for the global crypto market, including Bitcoin and Ethereum, as markets are boosted by the Nasdaq’s overnight rally and hopes of an imminent debt ceiling deal. This means that a slightly bullish market with upside potential is likely in the next 24 hours. Tropical conditions – very bullish with some upside potential – are expected for both Ripple and Cardano today.
Over a one-week horizon, cloudy weather with some sun for Bitcoin, which means a slightly bearish market with downside risk. The outlook is better for Ethereum, Ripple and Cardano: a slightly bullish market with upside potential.
Cryptos rebound on hopes of imminent debt ceiling deal & Nasdaq rally
The cryptocurrency trend was positive over the past 24 hours, as investors become more confident of a debt ceiling deal in the US. The US government will default as of June 1 if the current level of the country’s debt ceiling is not raised. This would create chaos on the financial markets.
The positive mood on tech-dominated Nasdaq index spilled over on crypto assets. Nasdaq rose 1.7 percent as the semiconductor producer Nvidia surged on its much stronger than expected outlook guidance for AI hardware.
The price of Bitcoin rose 0.7 percent over the past 24 hours, while that of Ethereum put on 1.4 percent. The combined market capitalization of the two cryptocurrencies makes up 63 percent of the crypto space.
Chinese crypto push?
China Central Television (CCTV), the country’s national broadcaster, in a rare move aired a segment on the adoption of cryptocurrencies in Hong Kong earlier this week.
“It's a big deal. The Chinese speaking communities are buzzing. Historically, coverages like these led to bull runs,” the CEO of Coinbase, known as CZ, tweeted, underlining past events do not predict the future. Coinbase is the largest US crypto exchange.
Ripple CEO expects SEC ruling in “weeks”
The on-dragging court case filed by the Securities and Exchange Commissions (SEC) against XRP will soon be over, Ripple, the owner of XRP said. XRP added 2 percent.
“I feel very confident that we’ll see a decision from the Court in this year. In fact, I will guess that in weeks, not months,” CEO Brad Garlinghouse told the ReDEFiNe Tomorrow 2023 conference.
The ruling is likely to have wide ranging implications for the entire US cryptosphere as the court's decision will set a precedent for whether cryptocurrencies qualify as securities or commodities. Commodities are less regulated than securities.
XRP also has plans to expand internationally. “We have more than a billion US dollars in cash on our balance sheet, we want to deploy that to grow both organically internally but also inorganically through acquisitions,” Garlinghouse said at a separate event earlier this week. He hinted at the United Arab Emirates and Switzerland, given their friendliness toward crypto technologies.
US indicators may signal future rate hike
A couple US indicators will be released during Friday, including the personal consumption expenditures (PCE) price index figures for April. Analysts are increasingly pricing in another 25-basis point rate hike on June 14. Higher interest rates make riskier assets such as cryptocurrencies less interesting to hold as less risky assets then generate higher returns.
DISCLAIMER
ATTMO, a weather-inspired AI tool, makes cryptocurrency predictions. It also forecasts longer-term cryptocurrency trends. These forecasts are not trading advice; they are only decision support tools. They do not include information that is specific to the user; in particular they do not account for their personal risk appetite or market assessment.