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Crypto markets volatile on uncertain risk sentiment

Home >  Daily Market Digest >  Crypto markets volatile on uncertain risk sentiment

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Written by:
Myrsini Giannouli

24 February 2023
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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

BTCUSD 1hr chart

 

ETH/USD 1h Chart

ETHUSD 1hr chart

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Written by:
Myrsini Giannouli

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