Stock markets rose on Wednesday in the wake of US inflation data. CPI data released on Wednesday showed that US inflation in June hit a 40-year high of 9.1% on an annual basis. Record high inflation rates for June had been already priced in by markets though, and the dollar retreated after the release of the CPI data. Risk on sentiment was renewed on Wednesday, relieving the pressure on stock markets. Cryptocurrency prices also rallied on Wednesday, as crypto markets have been following stock market trends.
Bitcoin price reclaimed the key $20,000 level on Wednesday. If Bitcoin price declines, support may be found at the $19,200 level and further down at the psychological level of $15,000, while resistance may be found near $21,800 and $23,000.
Ethereum price also rose on Wednesday, climbing above $1,100. If Ethereum price declines, it may encounter support at the $1000 level, representing its lowest price since January 2021 and further down at the psychological level of $500, while resistance may be encountered at $1,280 and higher up at $2.000.
A steep cryptocurrency selloff has been triggered in the past couple of months, as bearish tendencies have prevailed in crypto markets, with mounting layoffs in crypto firms and huge losses in trading volumes. Bitcoin and Ethereum have suffered heavy losses, plummeting to prices that haven’t been seen since the beginning of 2021.
Global recession fears are promoting a risk-aversion sentiment, pushing cryptocurrency prices down. An increasing number of major Central Banks are moving towards a tighter fiscal policy to tame soaring inflation rates, with Fed rhetoric pointing toward a strong rate hike in July. A rate hike of 75 base points is already been priced in by markets, catapulting the dollar to record highs and pushing cryptocurrency prices down. Stalling economic growth combined with fiscal tightening gives rise to fears of recession, promoting a risk-aversion sentiment and putting pressure on cryptocurrencies.
On the other hand, many market participants are seeking opportunities to buy cryptocurrencies at low prices, with expectations that they have reached the bottom. Bitcoin whales are buying the dip for major cryptocurrencies, preventing crypto markets from crashing completely.
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.
as a Liquidity Provider
and reliable execution
Fill in the registration
form and click
Once you are in the client secure area, please proceed with uploading your Proof of Identity and Proof of Residence.
When your live account is approved, you can deposit funds and start trading on your chosen platform!
The website you are now viewing is operated by TopFX Global Ltd, an entity which is regulated by the Financial Services Authority (FSA) of Seychelles with a Securities Dealer License No SD037 that is not established in the European Union or regulated by an EU National Competent Authority.
If you wish to proceed please confirm that you understand and accept the risks associated with trading with a non-EU entity (as these risks are described in the Own Initiative Acknowledgment Form and that your decision will be at your own exclusive initiative and that no solicitation has been made by TopFX Global Ltd or any other entity within the Group.
Don't show this message again
These cookies fall under the following categories: essential, functional and marketing cookies. Marketing cookies may also include third-party cookies.