Choose country & language:

Bitcoin and Major Cryptocurrencies Daily Digest: January 11th

Home >  Daily Market Digest >  Bitcoin and Major Cryptocurrencies Daily Digest: January 11th

Written by:
Myrsini Giannouli

11 January 2022
Share the article

Bitcoin and other cryptocurrencies came under pressure last week, following the Fed’s hawkish announcement. The expected reduction in economic stimulus turned investors away from high-risk assets and most major cryptocurrencies plundered. Most investors now believe that the Fed is on a fast track to return to a pre-pandemic monetary policy. Rising inflation rates in the US raise speculation that the US Central bank will raise its interest rates sooner than anticipated, resulting in possibly four rate hikes within 2021. 

Bitcoin and Ethereum suffered a bearish week at the beginning of the year, with Bitcoin dropping to $40,500 on Friday and ETH to $3,000. On Monday, the downtrend continued, with BTC going below the $40,000 level for the first time since September. Ethereum did not fare any better, crashing to $2,925. 

Currently, BTC is trading above the $40,000 support level and ETH a little above $3,000, while the outlook for both Bitcoin and Ethereum is bullish. If the downtrend is reversed, BTC price may find resistance at the $47,500 level and ETH at the 3,884 level.

Today, traders should pay special attention to scheduled speeches by FOMC members Loretta Mester and Esther George, as well as Fed Chair Jerome Powel’s testimony before the Senate Banking Committee. Fed members’ speeches are likely to affect cryptos, as they provide hints on the Central Bank’s monetary policy and hawkish comments may cause cryptocurrency prices to drop even further. 

BTC/USD 1h Chart

ETH/USD 1h Chart

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article:

Latest news

Dollar slides as US yields ease

Myrsini Giannouli 05 October 2022

Gold extends gains as US yields slip

Myrsini Giannouli 05 October 2022

Oil soars on OPEC output cut concerns

Myrsini Giannouli 05 October 2022

Cryptocurrencies edge higher as market sentiment shifts

Myrsini Giannouli 05 October 2022

Why TopFX

10-years

10-years

industry presence
as a Liquidity Provider

Spreads

Spreads
from 0.0 pips

and reliable execution

Segregated

Segregated

client funds

First-class

First-class

customer support