Representations of virtual currency Bitcoin are placed on U.S. Dollar banknotes in this illustration taken May 26, 2020.
Dado Ruvic | Reuters
Crypto fell with stocks on Wednesday as investors worried about the debt ceiling and the Federal Reserve’s next move.
Bitcoin fell more than 3% to $26,207.42, according to Coin Metrics. Ether lost about the same amount and was trading at $1,787.17.
The move coincided with a drop in U.S. equities. The Dow was down nearly 300 points while the S&P 500 and Nasdaq Composite fell about 1% each.
On Wednesday, Speaker Kevin McCarthy said debt ceiling talks are still hung up on spending levels – with eight days to go until the U.S. is at risk of a default. He also said he believes the negotiating teams could make progress Wednesday.
“Markets opened quite down after being down significantly yesterday, so this could be a reaction to that,” said David Wells, CEO at Enclave Markets. “Even though crypto is a global market, volumes pick up quite a bit during U.S. trading hours, so sometimes big crypto moves are following big equities moves that are macro…