Proactive Investors - Cryptocurrencies continued their downward trend despite the US debt ceiling crisis drawing to a close.
Bitcoin, the largest coin by market cap, shed 1.42% to US$26,786. The token fell to US$26,671 overnight, its lowest point in nearly a week.
Ethereum also lost ground, falling by 0.88% to US$1,854. Having fallen as low as US$1,846 overnight, the cryptocurrency also fell to its lowest point since Sunday.
Cryptocurrencies continued to fall despite the House of Representatives passing a bill to raise the US debt ceiling, which brings Washington closer to averting a historic default.
The bill must still pass the Senate and be signed by President Joe Biden to come into effect before the 5 June deadline, but the House vote was seen as the biggest threat to the legislation.
Uncertainty over whether the debt ceiling was weighing on risk appetite, according to Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
“Limited appetite for risk assets weighs on Bitcoin and other cryptocurrencies,” she said.
However, the bill passing the House did little to aid valuations, although it may mean "the market focus will be back to yields, which will likely continue to rise on the back of hawkish Fed expectations and that's a negative for Bitcoin".
Among the altcoins, XRP fell by 1.84% to US$0.5053, Cardano lost 2.92% to US$0.3645 and Elon Musk-favoured Dogecoin fell by 0.23% to US$0.07156.