Rally Retraces, Tether Continues its Tear

The crypto market has seen a significant reversal of its weekend rally as investors watchfully anticipate the House vote on the debt ceiling agreement brokered between the White House and the House Speaker. BTC has fallen below the $27k mark, while ETH grapples with maintaining a foothold above $1850, and other altcoins face more considerable downward pressure. Optimism (OP) has seen a roughly 4% decrease in value, hitting its lowest point since early January due to a significant token unlock event. Further compounding these market pressures is a strengthened US dollar, spurred on by lower-than-expected manufacturing figures out of China and hawkish sentiments from Fed President Mester advocating for continued rate hikes. Presently, the futures market is factoring in a nearly 70% chance of a further 25 basis point hike at the upcoming June meeting, adding to the prevailing sense of market unease.