A delay in the pivotal discussions between U.S. President Joe Biden and House of Representatives Republicans Kevin McCarthy has left the financial market, including the global crypto market, feeling uncertain. In response to this indecision, the 24-hour trading volume of the crypto market has decreased by a significant 23%, as investors and traders await clarity on the matter.
Despite this dip in trading volume, the global crypto market cap experienced a slight increase in the past day. Data reveals that the top crypto exchanges’ spot trading volume has fallen substantially over the same period. The 24-hour trading volume for Binance, the largest crypto exchange globally, dropped by over 340% in just 24 hours, currently standing at around $3.3 billion. In comparison, Coinbase, the biggest U.S. crypto exchange, saw its trading volume decline by nearly 40% in the past day, amounting to $302 million. Similarly, Kraken experienced a 48% slide in its 24-hour trading volume, which now amounts to $142 million.
One of the primary factors contributing to uncertainty in the financial and crypto markets is the upcoming meeting between President Joe Biden and Kevin McCarthy. The two are scheduled to discuss raising the federal $31.4 trillion debt ceiling. Biden, who is currently attending the G7 summit in Japan, will reportedly engage with McCarthy on Sunday after an apparent disagreement between officials.
The outcome of this talk could heavily impact the financial and crypto markets, and participants are eagerly anticipating these discussions for clarity and guidance on their next steps. While it remains uncertain how this talk will unfold, the financial market’s stability often relies heavily on the decisions made by influential political figures.
Meanwhile, the crypto industry continues to navigate its way through a myriad of challenges, with regulatory bodies like the SEC playing a crucial role in determining the fate of particular assets. In recent news, SEC staff emails unveiled that XRP had failed the Howey Test conclusion on the debt ceiling, adding another layer of complexity to the already intricate landscape of cryptocurrency regulations.
In conclusion, the current state of the financial and crypto markets is marked by uncertainty. With the markets swaying based on the outcome of upcoming discussions between significant political figures, it is essential for investors to stay informed and conduct thorough market research before making any moves in the ever-changing world of cryptocurrencies. As always, the responsibility for personal financial decisions lies solely with individuals and no one else.