Cryptocurrencies experienced a surge in prices due to optimism surrounding a resolution of the US debt ceiling crisis, which lifted the spirits of traders. However, there is still some hesitancy among investors. Bitcoin saw a modest increase of 0.86%, reaching US$26,446. Throughout the month, the leading cryptocurrency has remained within the range of US$26,000 to US$27,000. Similarly, Ethereum rose by 1.78% to US$1,811, reaching its highest level since Wednesday.
The uncertain situation surrounding the US debt ceiling has dampened risk appetite, impacting cryptocurrencies the most as they are considered high-risk assets. According to Ipek Ozkardeskaya, a senior analyst at Swissquote, the limited response of Bitcoin to yesterday's Nasdaq rally indicates that overall risk appetite continues to weigh on cryptocurrencies. She further anticipates that the selling pressure will persist until a resolution on the debt ceiling is reached.
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