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Crypto markets received a boost last week, as the outcome of the Fed monetary policy was perceived as dovish. The Federal Reserve raised interest rates by only 25 basis points, bringing the benchmark interest rate to a target range of 4.50% to 4.75%.
On Tuesday, Fed Chair Jerome Powell confirmed that the disinflation process has begun but emphasized that it still has a long way to go. Powell’s speech on Tuesday was cautious, but crypto markets rallied after his speech on diminished rate hike expectations.
Future rate hikes however are uncertain, as Powell’s speech indicated that the Fed’s decisions will be based strongly on disinflation rates and the state of the US economy. Rate hikes have become less aggressive, but the Fed might continue raising interest rates for longer than previously expected.
The bitcoin price rose to the $23,300 level on Tuesday. 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 Tuesday, rising to $1,670. If Ethereum's price declines, it may encounter support near $1,518, while if it increases, resistance may be encountered near $1,789.
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
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