BTC Surges After Debt Ceiling Deal, $28,000 Remains Major Zone of Resistance
In a bid to avert a potential debt default, the White House and House Republicans have tentatively agreed on a deal, as of May 27. This has sparked a rally in the U.S. equities markets and stimulated a recovery in the cryptocurrency sector, buoyed by the anticipated agreement.
Consequently, Bitcoin went from $26,300 to $28,100 in the last four days. It faced stiff overhead resistance at $28,200 which is also where the 50 DMA lies.
If the price turns down from here, we could see the bears pull BTC down to $25,000. The Bulls could come in to defend that zone because a drop below it could trigger massive selling.
However, if the bulls manage to push the BTC price above the 50 DMA, it would indicate strong buying on dips and could trigger a push to $31,000.
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CRYPTO NEWS WEEKLY ROUNDUP:
ETH Balance on Exchanges Hits 5-Year Low, Major Chunk Returns to Staking
Ether (ETH) balances on cryptocurrency exchanges have reached a five-year low, with only 17.86 million ETH held on exchanges as of May 26. The decline, unmatched since April 2018, began in September 2022 and was significantly impacted by the FTX crisis in November.
Presently, centralized exchanges hold only 14.85% of the total Ether supply, a stark contrast to the 25-26% seen during the 2021 bull run. Ethereum addresses possessing over 100 ETH have similarly dipped to a six-month low.
Analysts attribute the decrease to two main factors: the FTX collapse, which pushed investors towards self-custody wallets, and the Shapella upgrade, allowing validators to withdraw staked ETH. Notably, the majority of validators opted only to withdraw rewards, not unstake entirely.
This shift away from exchanges is generally viewed as a bullish indicator, as it suggests traders are not looking to sell, primarily choosing to re-stake their ETH.
Visa and Microsoft Among Key Participants in Brazil’s CBDC Pilot
Brazil is readying for the pilot test of its central bank digital currency (CBDC), the digital real, in June 2023, with several national and international companies set to participate. Participants for the project were shortlisted from over 36 bids involving more than 100 institutions.
The final list includes 14 participants, notably Microsoft, Visa, and Santader alongside Brazilian banks like Itaú Unibanco and Banco Inter.
The CBDC pilot will test the privacy and programmability functionalities of the digital real through a single use case involving a delivery versus payment protocol for federal public securities. Announced in 2022, the digital real will be pegged to the national currency, with a fixed supply that will be minted over time.
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