Bitcoin prices took a dive this morning to hit its two-month low due to the dollar's strength, and declining enthusiasm towards the Ordinals hype. The dollar index (DXY), which tracks the performance of the dollar against other global reserve currencies, saw a significant surge in the past 24 hours. This had a detrimental effect on Bitcoin, which usually has an inverse relationship with the U.S. dollar; the top cryptocurrency lost 4% in the last 24 hours and resulted in liquidations worth $50.4 million across all trading platforms. Ethereum and PEPE, the popular meme coin, also suffered - Ethereum dropped below the $1,800 mark for the first time in over 2 months and PEPE has plummeted by 23%.

The weakness of cryptocurrencies could also be attributed to the ongoing debt ceiling crisis in the United States, which Congress is yet to resolve. According to the Organization of the Petroleum Exporting Countries (OPEC), this unresolved issue could result in long-term economic consequences, especially if the United States defaults on its payments sometime in June.

At the same time, the momentum of Bitcoin Ordinals has also dwindled in the past few days. According to data analyst Domo, the trading volume of Bitcoin Ordinals almost halved in a single day on May 11, which could indicate a cooling of interest in the token project. With a mix of dollar strength, speculative cooling, and the U.S. debt crisis looming, it is likely that the crypto markets will remain correlated with the dollar in the near term.



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