The debt ceiling will remain the primary topic this week, but, unlike the past two weeks, President Biden and House Speaker McCarthy have struck an agreement in principle. They intend to lift the debt ceiling for two years while restricting non-defense spending.
The U.S. Composite PMI Production Index, which tracks the manufacturing and service sectors, has escalated to 54.5 in May, up from 53.4 the previous month.
The Personal Consumption Expenditures Index (PCE) saw a similar increase to 4.4% in April, up from 4.2% in March and exceeding the market's projection of 3.9%. The annual increase in the Core PCE price index, the Federal Reserve's preferred inflation gauge, increased slightly to 4.7% from 4.6% in the previous period, exceeding experts' expectations of 4.6%. Monthly core PCE inflation climbed by 0.4%, as did PCE inflation.
After remaining in a sideways movement for two consecutive weeks, Bitcoin's (BTC) price has soared to above the $27,000 level due to the current macroeconomic situation, and so does Ethereum (ETH), which increased to the $1,900 level.
The US Debt Ceiling news has had a significant impact on the crypto market, particularly on Bitcoin (BTC). BTC has shown a bullish reaction in response to the news, with a notable increase in momentum.
However, as the bullish trend has strengthened, selling pressure has become evident around the 28.5k price level. This selling pressure suggests that there are market participants who consider this level as an attractive opportunity to sell their BTC holdings.
Ethereum (ETH) has also exhibited a bullish reaction to the US Debt Ceiling news. The market sentiment surrounding ETH has turned positive, resulting in an upward price movement.
However, at the moment, ETH is facing a resistance level at $1,900. This price level has proven to be a significant hurdle for ETH's further advancement. Moreover, when examining the intraday chart, there are indications of a potential reversal in the price trend.
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