Crypto markets were volatile on Thursday, as risk sentiment remained uncertain. Hawkish Fed minutes on Wednesday pointed to further rate hikes up ahead driving risk assets down. On Thursday, cryptocurrencies fluctuated as markets adjusted Fed rate hike expectations.
The minutes of the latest Fed meeting was more hawkish than expected, putting pressure on crypto markets. The minutes confirmed that FOMC members believe that there is still more work to be done to tackle inflation and the Fed might raise interest rates for longer than previously expected. The Federal Reserve raised interest rates by only 25 basis points at its February meeting, bringing the benchmark interest rate to a target range of 4.50% to 4.75%. Current market odds lean towards further tightening in the upcoming Fed meetings and an increase in interest rates up to 5.25%.
Prolonged rate hikes fuel global recession concerns, driving risk assets down. As inflation starts to cool though, central banks are starting to lower the pace of rate hikes, which may revive risk sentiment.
Bitcoin price was volatile on Thursday, gaining strength during the day but paring gains later on, dropping to $23,800. If the BTC price declines, support can be found near $23,400, while resistance may be encountered near $25,000.
Ethereum price gained strength on Thursday, rising above touching the $1,650 level. If Ethereum's price declines, it may encounter support near $1,600, while if it increases, resistance may be encountered near $1,725.
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 Global Ltd, 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 you understand and accept the risks associated with trading with a non-EU entity (as these risks are described in the Own Initiative Acknowledgment Form and that your decision will be at your own exclusive initiative and that no solicitation has been made by TopFX Global Ltd or any other entity within the Group.
Don't show this message again
These cookies fall under the following categories: essential, functional and marketing cookies. Marketing cookies may also include third-party cookies.
You can customize your selection of which cookies you want to accept.
These cookies are necessary for the website to function correctly and cannot be switched off.
Functional cookies allow the website to remember users' preferences and the choices you make on the website such as username, region, and language.