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At practically the eleventh hour republicans and democrats hammered out a deal to keep the U.S. government open for business for another 45 days. Bitcoin swings up on the news.
Another government shutdown averted
Yet again, the U.S. government has been through a period when it has looked as though it was going to shut down. The same thing happened at the beginning of June this year when a last minute agreement avoided a shutdown over the U.S. debt ceiling.
Be that as it may, the 45-day extension that was agreed upon this time has only papered over the cracks for the time being, as funding legislation is still very far from being finalised given the disagreements over overall funding levels, borders, and the Ukraine/Russia war.
All this is part of the mad, mad political and monetary system that reigns in the United States. Go into more and more debt or the system falls to pieces - try to cut the debt and the system falls apart, and who pays the price for either of these scenarios? The U.S. citizen.
Bitcoin makes hay
As news of the U.S. temporary agreement came out, bitcoin shot up over 3% to hit $28,000 and also collided with its 200-week moving average - an incredibly strong and critical resistance level.
Today has seen bitcoin take hold above this moving average and at time of going to press the king of the cryptocurrencies is sitting nicely at $28,360. Should bitcoin bulls succeed in consolidating above the 200-week MA, all could be set for a move back to test the previous local high of just under $32,000.
Bitcoin dominance increases
Although the crypto market moved up against the dollar, it was bitcoin that did all the spade work, generally moving up against the vast majority of crypto pairs, with bitcoin dominance spiking well above 50% once more.
This keeps bitcoin dominance above its upwards trendline, one it has been following since early January of this year. Strong resistance has been met now, and so it remains to be seen whether bitcoin will break through and really lead the crypto bull market, or whether it will fall back and let the altcoins catch up.
However, with liquidity across all markets still scarce, unless there is a large event that forces the U.S. government to start printing again, progress for crypto is likely to be slow.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.