Banking instability boosts Crypto markets

Crypto markets surged last week, with Bitcoin rising to its highest levels since June 2022. Reduced rate hike expectations boosted risk sentiment, providing support for cryptocurrency prices. 

The Federal Reserve is holding its highly anticipated monetary policy meeting this week on the 22nd. The Fed is meeting this week against an increasingly uncertain economic backdrop, as the global banking crisis has changed market expectations. Markets are pricing in a 25-bp hike, although there is speculation that the Fed may even pause rate hikes completely this week as concerns about a banking sector meltdown remain high.

The recent banking crisis initially drove cryptocurrency prices down. As, however, the traditional banking system faced problems, the appeal of cryptocurrencies became more apparent. Many investors have turned towards cryptocurrencies in the past few days fearing a globalized meltdown in the banking system.

Bitcoin remained strong on Monday, with BTC price oscillating around the $28,000 level. If the BTC price declines, support can be found near $24,000, while resistance may be encountered near $29,000. 

Ethereum price also traded sideways with low volatility, fluctuating around the $1,750 level. If Ethereum's price declines, it may encounter support near $1,460, while if it increases, resistance may be encountered at $2,000.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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