Bitcoin slides below $27K as debt ceiling talks eyed

Treasury Secretary Janet Yellen warned the US could breach its debt limit by June 1, potentially setting off a recession in the event of default. Yellen also and said a default “could lead to a recession,” so several analysts believe a resolution to the debt ceiling issue could potentially buoy bitcoin.

Bitcoin continued its slightly downward consolidation on Wednesday, slipping just below $27,000 as investors kept close attention on the debt ceiling negotiations in Washington.

The largest cryptocurrency by market capitalization was recently trading at $26,950, down roughly 1.3% for the day, according to CoinDesk data. Over the past 24 hours, BTC’s price has been range-bound between $26,800-$27,400. At the time of writing bitcoin is trading at $26780.

The current macroeconomic situation is conducive for increased crypto adoption. The debt ceiling getting raised also bodes well for risk assets as market participants seek to secure wealth.