Risk-off sentiment weighs down Cryptocurrencies

Cryptocurrency prices went down on Monday, affected by economic uncertainty. Risk sentiment fluctuates, as banking sector woes raise recession concerns. The recent banking crisis has undermined trust in the banking system, raising the appeal of investing in less conventional assets, such as cryptocurrencies. Many investors have turned towards cryptocurrencies fearing a globalised meltdown in the banking system. Renewed concerns about a banking sector meltdown, however, have caused turbulence in crypto markets. 

Signs that major central banks are starting to wind down their hiking cycles provide support for risk assets. The Federal Reserve raised interest rates by 25 basis points at its monetary policy meeting last week, bringing the benchmark interest rate to a 16-year high target range of 5.00% to 5.25%. The US Central Bank has signaled that its hawkish policy is coming to an end, boosting risk assets.

Bitcoin price edged lower on Monday, touching the $27,500 level. If the BTC price declines, support can be found near $27,000, while resistance may be encountered near $30,000. 

Ethereum price declined on Monday, dropping to the $1,840 level. If Ethereum's price declines, it may encounter support near $1,800, while if it increases, resistance may be encountered at $2,017.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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