Cryptocurrencies steady ahead of Fed meeting

Cryptocurrency prices remained mostly steady on Tuesday, trading with low volatility, ahead of the highly anticipated Fed interest rate announcement on Tuesday. Cryptocurrencies traded without a clear trend this week, as markets are poised to react to major policy decisions. Several major Central Banks are meeting this week most notably the Fed on November 1st. This week’s interest rate decisions are expected to affect crypto markets considerably, as increases in central banks’ interest rates are putting pressure on risk assets. 

The Fed kept interest rates stable at its September policy meeting, but interest rates are likely to stay in restrictive territory for a longer period, hindering economic growth. Risk sentiment has improved lately though, as dovish Fed Rhetoric has raised expectations of an end to rate hikes. Markets widely expect the Fed to hold rates steady this week at the monetary policy meeting on November 1st, and market participants will focus mostly on the Fed’s forward guidance.

Bitcoin price edged slightly higher on Tuesday, trading mostly above the $34,500 level. If BTC price declines, support can be found near $33,300, while resistance may be encountered near $35,000. 

Ethereum traded sideways on Tuesday, oscillating around the 1,800 level. If Ethereum's price declines, it may encounter support near $1,750, while if it increases, resistance may be encountered near $1,850.

Crypto markets are under pressure, however, as geopolitical events sour risk sentiment. The war between Israel and Hamas is driving cryptocurrency prices down. The conflict rages on in the Gaza area, causing market turmoil. 

Bitcoin price surged early last week on news that the iShares Bitcoin Trust had been listed on the Depositary Trust & Clearing Corporation, which clears Nasdaq trades. Bitcoin’s rally was halted later in the week, but BTC price remained strong as markets anticipate a Bitcoin ETF launch soon.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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