<img src=”https://storage.googleapis.com/prod-zenger-upload/image/20230621/feat_08c6c484-eaf7-4836-87c2-31db78a28cfc.jpg” alt=”Representation of various cryptocurrencies. Major cryptocurrencies experienced a significant downturn on Wednesday evening. (KANCHANARA/UNSPLASH)“>

Major cryptocurrencies experienced a significant downturn on Wednesday evening, as investors seemingly ignored industry-specific and macro events that had previously propelled Bitcoin’s price beyond $30,000. 

This sudden shift occurred despite reports of a Fitch downgrade of the U.S. Treasurys and MicroStrategy’s intentions to acquire additional Bitcoin, which initially contributed to the surge before causing it to plummet below $29,000.

The current market pattern, which is expected to continue, may change if the Securities and Exchange Commission (SEC) approves any of the spot bitcoin ETF applications submitted in mid-June by prominent financial services companies like BlackRock. However, it is uncertain when the SEC will make a decision.

Currently, the global crypto market capitalization stands at $1.17 trillion, a 2.14% decrease in the last day.

Stocks experienced a selloff on Wednesday, with the Nasdaq Composite suffering its worst day since February. This was primarily fueled by Fitch downgrading the long-term rating for the U.S., triggering a resurgence of risk-off sentiment.The Nasdaq Composite index faced a notable decline of 2.17%, while the S&P 500 saw a pullback of 1.38%.

Fitch Ratings made the decision to cut the long-term foreign currency issuer default rating for the U.S. from AAA to AA+ on Tuesday night. This downgrade was attributed to the anticipated fiscal deterioration over the next three years.

It’s worth noting that the last time the U.S. witnessed a major ratings agency downgrade was in 2011 when Standard & Poor’s reduced the rating to AA+ from AAA.

“Bitcoin is wavering above the $29,000 level as traders await any updates with a US spot Bitcoin ETF. We’ve seen this movie before&mldr; Michael Saylor is adding Bitcoin to MicroStrategy’s portfolio.  Fresh money has not yet been coming into the cryptoverse so range trading might remain a while longer,” said OANDA Senior Market Analyst Edward Moya.

Crypto analyst Michael Van de Poppe notes that the total market capitalization for crypto remains above the 200-Week MA and EMA, highlighting the importance of these levels to sustain. Moreover, it is worth mentioning that we have witnessed a series of higher lows since the November 2022 low, indicating the initiation of a promising new bull cycle.

© 2023 Zenger News.com. Zenger News does not provide investment advice. All rights reserved.

Produced in association with Benzinga

Edited by Arnab Nandy