Choose country & language:

Cryptos on the rise as risk demand grows

Home >  Daily Market Digest >  Cryptos on the rise as risk demand grows

Written by:
Myrsini Giannouli

30 March 2022
Share the article

A bullish trend has prevailed over the past week, driving cryptocurrency prices up. Bitcoin price broke through the $45,000 level resistance during the weekend, rising above $46,500, its highest weekly close yet in 2022. This week, the Bitcoin price continued to climb, reaching $48,000 for the first time since the beginning of the year, and eyeing the $50,000 level. On Tuesday, BTC traded sideways, holding on to its gains. If Bitcoin price falls, it may find support at $36,000 and $33,000, while resistance may be found at the psychological level of $50,000. 

Most major cryptocurrencies have rallied over the past week, with Ethereum outperforming Bitcoin recently, as the release of a long-awaited software upgrade in Ethereum seems to be drawing near, boosting its price. Ethereum price also spiked during the weekend, reaching almost the $3,300 level. This week, ETH continued to climb, testing its $3,400 resistance. If Ethereum's price falls, it may find support at $2,489. In case its price goes further up, it may find resistance near $3,800.

Cryptos have been under pressure since the beginning of the year, hit by a bout of risk-aversion. Geopolitical tensions have been driving the price of cryptos down, as investors shy away from risk assets. On Tuesday, reports of progress in diplomatic talks between Russia and Ukraine have sparked hopes of a de-escalation of the crisis, providing relief to crypto markets, as demand for risk assets grows. The Ukrainian side has reportedly proposed to abandon its prospects of joining military alliances, in exchange for security guarantees. Russia on the other hand has pledged to scale down military operations in Kyiv and Chernihiv and is reportedly willing to let Ukraine join the EU, with the condition that it does not join NATO.

The shift of major central banks towards a more hawkish fiscal policy has been putting pressure on cryptocurrencies over the past few months. The Federal Reserve raised its benchmark interest rate by 25 base points, bringing its interest rate to 0.50% and the BOE also announced a 25-base points rate hike, raising its interest rate to 0.75%. Cryptocurrency prices climbed however after the announcement of the rate hikes, as the interest rate raise fell within market expectations and was already priced in by markets. 

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

BTCUSD 1hr chart

 

ETH/USD 1h Chart

ETHUSD 1hr 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

BOE announces bond-buying program, Sterling weakens

Myrsini Giannouli 29 September 2022

Gold rallies on the declining dollar

Myrsini Giannouli 29 September 2022

Oil prices rise on US crude drop

Myrsini Giannouli 29 September 2022

Cryptocurrencies rally reversing early declines

Myrsini Giannouli 29 September 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

Open your Live Account in 3 Steps

Step 1

Fill in the registration
form and click
"Create account".

Step 2

Once you are in the client secure area, please proceed with uploading your Proof of Identity and Proof of Residence.

Step 3

When your live account is approved, you can deposit funds and start trading on your chosen platform!