• Debt ceiling concerns may impact cryptocurrency market as treasury balance plunges.
• Bitcoin’s next bull catalyst: realized price flipping in June, just $800 from long-term holder threshold.
• 26,000 Bitcoin withdrawn from exchanges – biggest withdraw this year.
Debt Ceiling Concerns Impacting Cryptocurrency Market
Revenues in April this year were 26% below the same month in 2022, according to MacroScope. Tax revenues in the current fiscal year to April were more than $250bn below estimates made just a few months earlier. President Biden is insisting on an unconditional debt-ceiling increase, and a meeting will occur between President Biden and congressional leaders around the concerns of the Treasury balance remaining depleted. The Treasury General Account sits at $155 billion and is plunging fast, with markets still expecting a last-minute deal as per usual.
Bitcoin’s Next Bull Catalyst
The next bull catalyst for Bitcoin is expected to be realized price flipping in June, which is only $800 away from its long-term holder threshold of $5400 USD. This could indicate that investors are making decisions based on their confidence in BTC’s future potential rather than its current market value. If realized price flips over the long-term holder threshold it could signify another bull run for Bitcoin prices as new money enters the market due to increased investor confidence.
Large Withdrawals From Exchanges
26,000 Bitcoins have been withdrawn from exchanges, which is reportedly the largest withdraw this year so far. This could also signal an incoming bullish trend for BTC prices because it indicates investors are taking their holdings off of exchanges and investing them into wallets where they can hold onto them longer term instead of trading them frequently on exchanges or selling them off quickly for short-term profits or gains.
Growth of Derivatives at US Banks
Derivatives at US banks have grown 2,098% in last two decades which has further highlighted how institutions have increased their involvement with cryptocurrencies over recent years and further legitimized crypto assets overall by showing that major financial players are taking part in the industry as well now too.
Exchange Deposits Hit Three Year Low
To add onto these bullish signs for BTC prices exchange deposits have hit a three year low indicating that people are holding onto their crypto investments rather than depositing them into exchanges where they can be traded more easily but with higher risks associated due to lack of security on many third party platforms or online wallets such as Coinbase or Binance etc..