Bitcoin Climbs Amid Cryptocurrency Rally

As part of a widespread cryptocurrency rally, the largest digital token advanced. Gains help the digital asset market recover from a difficult quarter. A deal to raise the US debt ceiling helped investors feel better, and bitcoin climbed to its highest level in more than two weeks as a result. As of 9:32 a.m. in Singapore, the largest digital token had gained as much as 3.2% on Monday and was fluctuating near its 50-day moving average, trading at $28,182. Smaller tokens like Ether and Binance Coin also experienced growth.

International markets have become more risk-averse as a result of House Speaker Kevin McCarthy and President Joe Biden's agreement on the debt ceiling. Congress must still quickly approve the agreement in order to prevent a US default. Other potential obstacles include recent increases in Treasury yields and wagers on further US monetary tightening. The resolution of the debt-ceiling impasse, according to John Toro, head of trading at digital asset exchange Independent Reserve, is the direct cause of this morning's positive risk sentiment.

Front-end funding costs are still very high in comparison to cryptocurrency returns, which causes long holders to carry a negative carry. This will continue to be a barrier for cryptocurrencies and risky investments. Since March, Bitcoin has been on a five-day winning streak, which has lessened the pain of a challenging quarter characterized by low liquidity and a US crackdown.