Bitcoin dips as crypto markets turn bearish

Bitcoin price surged to an all-time high of $109,880 early on Monday but lost its bullish momentum. Bitcoin price dipped on Wednesday, dropping from $106,000 to 104,000. If the BTC price declines, support can be found at $97,100, while resistance may be encountered at the new all-time high of $108,880. 

Ethereum price edged lower on Wednesday, dropping from $3,330 to $3,250. If Ethereum's price declines, it may encounter support near $3,000, while if it increases, resistance may be encountered near $3,520.

Bitcoin price registered a new all-time high of $109,880 on Monday ahead of Donald Trump’s inauguration. Trump’s proposed plans for building a Bitcoin strategic reserve have been boosting Bitcoin price. Donald Trump has openly declared his support of crypto markets, announcing that he will make the US ‘the crypto capital of the planet’. Growing expectations that the new government will adopt a pro-crypto regulatory and fiscal policy are boosting crypto markets. 

On the other hand, uncertainty over Trump’s future policies and trade tariffs is generating a risk aversion sentiment, which puts pressure on crypto markets. Crypto markets turned bearish on Wednesday, and most major cryptocurrencies dipped. 

Cryptocurrency prices are also affected by central banks’ interest rates. The US Federal Reserve cut interest rates by 25 basis points at its latest meeting to a target range of 4.25% to 4.50%.  Indications that the Fed will follow a more hawkish approach than previously anticipated are putting pressure on crypto markets.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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