Choose country & language:
Risk assets rallied on Wednesday and remained strong on Thursday. Crypto markets gained strength after Wednesday's Fed monetary policy meeting on renewed risk sentiment.
After a series of aggressive rate hikes last year, the Fed has finally decided to relax its hawkish policy, boosting cryptocurrency prices. The Federal Reserve raised interest rates by only 25 basis points at Wednesday’s meeting, bringing the benchmark interest rate to a target range of 4.50% to 4.75%. Even though inflation rates remain high, cooling price pressures have induced the Fed to scale back its rate hikes, providing support for riskier assets. Fed Chair Jerome Powell stated that the disinflation process has started, boosting stock markets and crypto markets, in anticipation of lower interest rates by the end of the year.
In addition, the International Monetary Fund revised its global economic growth outlook, easing recession concerns. According to the IMF World Economic Outlook, the global economy is expected to grow by 2.9% this year, raising optimism for economic recovery.
Bitcoin price tested the resistance at $23,900 on Thursday, touching $24,000. If the BTC price declines, support can be found near $22,390, while further resistance may be encountered near $25,000.
Ethereum price also gained strength on Thursday, rising to $1,700. If Ethereum's price declines, it may encounter support near $1,518, while if it increases, resistance may be encountered near $1,660.
Global cryptocurrency market capitalization has started to recover this year and remains above $1 trillion. Crypto bulls are hoping that the recent cryptocurrency selloff has passed and that market confidence in the industry will be restored. Bears are fighting back, however, pushing cryptocurrency prices down.
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
industry presence
as a Liquidity Provider
and reliable execution
client funds
customer support
