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Cryptos dip as Central Banks move towards raising interest rates

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Written by:
Myrsini Giannouli

04 February 2022
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Bitcoin and Ethereum had a bullish start to the week, but lost their gains on Wednesday and continued their decline on Thursday. Since the start of the year, the bulls have made several attempts to push BTC price back up, but couldn’t sustain an uptrend for long, as the bears fought back. 

Geopolitical tensions contribute towards keeping cryptocurrency prices down, as risk-appetite decreases and investors turn to safe-haven assets. The hawkish shift in the fiscal policy of most major Central banks also puts pressure on cryptocurrencies. Regulatory concerns add pressure on crypto markets as well, as many countries around the world are launching a crackdown on cryptocurrencies. 

Bitcoin edged lower on Thursday, trading above the $36,000 level support. If BTC price declines, it may find further support around $33,000, while if the price of Bitcoin goes up, it may find resistance at $43,000 and further up at $44,300. Ethereum dipped on Thursday, testing its $2,640 level support and going as low as $2,570. If ETH price continues dropping, it may encounter support further down at $2,310. In case its price goes up, it may find resistance around $3,000 and further up around $3,220.

BTC/USD 1h Chart

BTCUSD 1hr chart

 

ETH/USD 1h Chart

ETHUSD 1hr chart

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Written by:
Myrsini Giannouli

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