Chat with us, powered by LiveChat

Elija el país y el idioma:

Close Icon

Cryptocurrencies unstable ahead of Fed meeting

Home >  Daily Market Digest >  Cryptocurrencies unstable ahead of Fed meeting

detail_image_market
author_img

Written by:
Myrsini Giannouli

20 September 2022
Share the article

Cryptocurrency prices plummeted last week as risk appetite fell, putting pressure on riskier assets. On Monday, cryptocurrency prices were volatile as markets were unstable ahead of Wednesday’s Fed meeting. Risk sentiment remains uncertain, affecting stock markets and crypto markets alike. 

Bitcoin traded below the key $20,000 level on Monday, dropping below $18,500 before paring some of its losses later in the day and climbing back to $19,500. If BTC declines further, support can be found at the $19,200 level, while resistance may be encountered near $20,500. 

Ethereum price dropped below $1,300 early on Monday but rebounded and climbed back above $1,350. If Ethereum's price declines, it may encounter support at the psychological level of $1,000. If Ethereum's price increases, resistance may be encountered near $1,640.

The long-anticipated Merge was completed on Thursday, but the Ethereum price crashed by more than 15% after the merge. Ethereum price had been boosted in anticipation of the so-called ‘merge’ for months. The hype created around the merger had created a bullish sentiment for the cryptocurrency, which deflated following its completion triggering a selloff.

The Merge from the Proof-of-Work to the Proof-of-Stake method is a significant network upgrade that is expected to lead to an increase in demand for Ethereum. It is also a more environmentally-friendly consensus model, limiting drastically the energy consumption and carbon footprint of Ethereum.

Steep rate hikes increase global recession concerns, putting pressure on risk assets. This week, all eyes are going to be on the much-anticipated Fed monetary policy meeting on the 21st as Fed is set for another steep rate hike. The Fed is expected to perform a steep rate hike, with market odds in favor of a 75-bp increase in interest rates, while recently traders have started betting on a 100-bp rate hike. A raise in the US Central Bank’s interest rates have already been priced in by markets, though, and may have muted impact on cryptocurrency prices. Cryptocurrencies may even go up in case the Fed’s tone in the Statement and Press Conference following the policy meeting is more dovish than expected. A more aggressive rate hike and a more hawkish Statement though, are likely to set cryptocurrencies tumbling. 

BTC/USD 1h Chart

BTCUSD 1hr chart

 

ETH/USD 1h Chart

ETHUSD 1hr 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.

author_img

Written by:
Myrsini Giannouli

Share the article:

Latest news

main_image_market

Dollar steady ahead of key US economic data

Myrsini Giannouli 28 March 2024
main_image_market

Gold prices advance as US treasury yields decline

Myrsini Giannouli 28 March 2024

Oil prices rise on lower-than-expected US stockpiles

Myrsini Giannouli 28 March 2024

Bitcoin struggles to maintain key $70,000 level

Myrsini Giannouli 28 March 2024
Por qué TopFX
10-years
13+ años

presencia en el sector como proveedor de liquidez

Spreads
Spreads desde 0.0 pips

y una ejecución fiable

Segregated
Fondos de clientes

segregados

First-class
La mejor

atención al cliente

IMPORTANTE

El sitio web que está viendo ahora es operado por TopFX Global Ltd, una entidad regulada por la Autoridad de Servicios Financieros (FSA) de Seychelles con una Licencia de Agente de Valores No SD037 que no está establecida en la Unión Europea o regulada por una Autoridad Nacional Competente de la UE.

Si desea continuar, confirme que su decisión será por su propia iniciativa exclusiva, y que TopFX, o cualquier otra entidad dentro del Grupo no han realizado ninguna solicitud.

No volver a mostrar este mensaje

Cookies en TopFX

La página web de TopFX usa cookies para optimizar la experiencia del usuario.

Estas cookies pertenecen a las siguientes categorías: esenciales, funcionales y publicitarias. Las cookies publicitarias también pueden incluir cookies de terceros.

Administrar preferencias

Puede personalizar su selección de las cookies que desea aceptar.

  • Esenciales

    Estas cookies son necesarias para que la página web funcione correctamente y no se pueden desactivar.

  • Funcionales

    Las cookies funcionales permiten que la página web recuerde las preferencias de los usuarios y las elecciones que hagan en la página web, como el nombre de usuario, la región y el idioma.

  • Publicitarias

    Estas cookies se utilizan para rastrear a los visitantes en nuestros sitios web y mostrarle anuncios más relevantes. Las cookies de marketing también incluyen cookies de terceros de socios. Para obtener más información relacionada con la protección y recopilación de datos, consulte nuestra Política de privacidad y Divulgación de cookies.