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Bitcoin and Ethereum still weighed down by risk appetite

Published 26/05/2023, 08:47
©  Reuters Bitcoin and Ethereum still weighed down by risk appetite
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Proactive Investors - Cryptocurrencies enjoyed a bounce in prices as hopes of a deal in the US over the debt ceiling crisis helped lighten the mood among traders, although appetite continues to weigh on sentiment.

Bitcoin gained 0.86% to US$26,446. The largest coin by market cap has been flirting with around the US$26,000 to US$27,000 mark for most of the month.

Elsewhere, Ethereum added 1.78% to US$1,811, with the digital token trading at its highest level since Wednesday.

Uncertainty around the US debt ceiling has been weighing on risk appetite, with cryptocurrencies suffering the most as the ‘riskiest’ assets.

“We see that Bitcoin barely reacted to yesterday's Nasdaq rally, hinting that overall risk appetite continues weighing on cryptocurrencies,” said Ipek Ozkardeskaya, senior analyst at Swissquote.

“I expect the selling pressure to continue into an eventual debt ceiling deal,” she added.

Among the altcoins, XRP added 2.6% to US$0.4616, Polygon gained 1.7% to US$0.894 and Litecoin added 3.5% to US$87.16.

Read more on Proactive Investors UK

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