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Cryptocurrency prices plummeted on Monday after rising last week. Economic uncertainty is causing volatility in stock markets and crypto markets. Risk sentiment soured on Monday after the collapse of the First Republic Bank, pushing cryptocurrency prices down.
The recent banking crisis has undermined trust in the banking system, raising the appeal of investing in less conventional assets, such as cryptocurrencies. Many investors have turned towards cryptocurrencies fearing a globalised meltdown in the banking system. However, renewal concerns about a banking sector meltdown have caused turbulence in crypto markets. First Republic Bank announced last week that its deposits fell 40% in the first quarter of this year and its stocks went into freefall. First Republic collapsed on Monday but was bought by JPMorgan after US regulators invited other banking institutions to step in.
Increased rate hike expectations put pressure on cryptocurrency prices. The Federal Reserve raised interest rates by only 25 basis points at its meeting in March, bringing the benchmark interest rate to a target range of 4.75% to 5.00%. Market odds currently favor another 25-basis point rate hike at the Fed’s next meeting on Wednesday.
Bitcoin price plummeted on Monday, touching $28,300. If the BTC price declines, support can be found near $27,000, while resistance may be encountered near $30,000.
Ethereum price also declined on Monday, dropping to the $1,830 level. If Ethereum's price declines, it may encounter support near $1,780; if it increases, resistance may be encountered at $1,960.
BTC/USD 1h Chart
ETH/USD 1h Chart
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Written by:
Myrsini Giannouli
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