The Federal Reserve raised its benchmark interest rate by 25 base points on Wednesday, bringing its benchmark interest rate to 0.50%. The BoE also announced a 25-base points rate hike after its monetary policy meeting on Thursday, raising its interest rate to 0.75%. The shift of major central banks towards a more hawkish fiscal policy has been putting pressure on cryptocurrencies over the past few months.
After the announcement of the Fed rate hike, however, cryptocurrency prices climbed, as the interest rate raise fell within market expectations and was already priced in by markets. Similarly, the BoE rate hike on Thursday had seemingly little effect on cryptocurrencies. The Fed and BoE policy statements were interpreted by investors as less hawkish than expected, benefitting cryptos.
Bitcoin remained above the $40,000 psychological level on Thursday, trading around $41,000. If Bitcoin price falls, it may find support at $36,000 and $33,000, while resistance may be found at $40,000 and further up near $44,300. Ethereum price also went up, climbing above $2,800. Ethereum may find support at $2,489. In case its price goes up, it may find resistance at $3,000 and further up at $3,400.
Cryptos have been under pressure since the beginning of the year, hit by a bout of risk-aversion. Mounting geopolitical tensions have been driving the price of cryptos down, as investors shy away from risk assets. This week, however, diplomatic talks between Russia and Ukraine have sparked hope of a de-escalation of the crisis. In addition, most major cryptocurrencies have received a boost over the past couple of weeks, as demand from Russian and Ukrainian markets increased. Bitcoin volume from Russian markets has increased considerably, as Russian investors aim to escape the plummeting Rouble and Russian sanctions.
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.
The website you are now viewing is operated by TopFX, a trade name of Fondex Limited, 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 your decision will be at your own exclusive initiative and that no solicitation has been made by TopFX or any other entity within the Group.
These cookies fall under the following categories: essential, functional and marketing cookies. Marketing cookies may also include third-party cookies.