• The U.S. Congress recently passed a bill suspending the debt ceiling, which led to a surge in traditional stocks and gold prices that outshone Bitcoin and Ethereum.
• Crypto assets such as Bitcoin [BTC] and Ethereum [ETH] were trading at a profit on a daily timeframe but still lagging behind equities.
• Santiment’s insights indicated that the S&P 500 price had surpassed $4000, while gold was trading above $1900 at press time.
US Debt Ceiling Suspension Impacts Markets
The recent US debt ceiling suspension has caused a major shift in market dynamics, with traditional stocks and gold prices surging ahead of Bitcoin and Ethereum. On June 1, the U.S. Congress approved an agreement to raise the government’s borrowing limit, averting potential calamity of defaulting on debt payments by 2024.
Traditional Stocks Outshine Cryptocurrencies
According to insights from Santiment, the decision to raise the debt ceiling profoundly impacted the price movements of various assets. Traditional stocks like the S&P 500 witnessed a remarkable surge reaching their highest level since August 2020 while gold also experienced an upward lift as indicated by charts. At press time, S&P 500 had surpassed $4000 mark while gold exceeded $1900 mark.
Bitcoin & Ethereum Below Traditional Stocks
Contrarily, cryptocurrencies including Bitcoin and Ethereum were trailing behind equities showing weak correlation with them as depicted by chart readings from Santiment platform. At press time BTC was trading at approximately $27160 showcasing modest gain of over 1% exhibiting bearish trend as indicated by its Relative Strength Index (RSI) on daily timeframe whereas ETH was trading around $2204 marking 3% gain in 24 hours period also indicating bearish trend in-terms of RSI readings on daily timeframe according to Santiment platform insights .
What Does This Mean for Crypto Assets?
With traditional markets receiving much attention lately it is expected that cryptocurrencies will experience some bearish pressure due to lack of investor interest or capital inflow from other markets into cryptos however some analysts are predicting that this could be temporary phase after which crypto market could regain its momentum but only time will tell what will happen next .
In conclusion, it can be said that U.S.’s decision to suspend its debt ceiling has significantly impacted traditional stocks and gold prices outshining Bitcoin and Ethereum which have been experiencing comparatively lower performance than those assets leading many investors to shift their focus towards conventional markets instead of cryptos for the time being .