The cryptocurrency market has been affected this week by uncertainty surrounding the U.S. debt ceiling vote and potential interest rate hikes. While legislation to raise the debt ceiling and cut government spending was introduced in the House of Representatives on Tuesday, the market remains on edge due to the bill’s unclear fate until it is voted upon. In light of the growing concerns regarding this macroeconomic development, what are the best cryptos to buy now?
The debt ceiling vote and the prospect of Fed rate hikes led to a downturn in the cryptocurrency market today. The leading cryptocurrencies, Bitcoin and Ethereum, are declining as investors grew cautious. If the declines continue, Bitcoin could post its worst monthly performance since November 2022, and Ethereum may see its worst month since December 2022. The debt ceiling bill moved to the House on Tuesday, with a vote scheduled for later today. If approved, it will proceed to the Senate, where debate could continue over the weekend ahead of the June 5 deadline. Despite general optimism that the bill will ultimately pass, some in Congress oppose it.
Unexpected growth in U.S. job openings points to a strong labor market, which could prompt the Fed to raise rates at its June meeting as well. According to the CME FedWatch Tool, the markets forecast a 69.1% chance of a quarter-point rate hike in June as of writing. Meanwhile, investors anxiously await the U.S. jobs report for May on Friday, too, which could provide insight into how well the economy is withstanding higher rates and inflation.
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Source: Cryptonews
