Crypto markets under pressure on risk-off sentiment

Crypto markets were under pressure on Tuesday as risk-off sentiment prevailed. Expectations of further economic tightening have dragged risk sentiment down, putting strain on cryptocurrencies. 

Bitcoin price edged lower on Tuesday, touching the $26,100 level. If BTC price declines, support can be found near $25,700, while resistance may be encountered near $26,700. 

Ethereum price also dipped on Tuesday, touching the $1,580 level. If Ethereum's price declines, it may encounter support near $1,550, while if it increases, resistance may be encountered near $1,600.

The Fed’s hawkish message drove cryptocurrency prices down last week. Expectations of further tightening lowered risk sentiment putting pressure on risk assets. 

The Fed kept interest rates stable last week, but delivered a hawkish message, raising the odds of future rate hikes. The Fed’s projections showed that interest rates may rise even further this year and are likely to stay in restrictive territory for a longer period, hindering economic growth. Increases in central banks’ interest rates sour risk sentiment, driving risk assets down.

The Securities and Exchange Commission (SEC) has been hesitating in deciding regarding the future of Bitcoin ETFs. BlackRock and other institutions have applied for a Bitcoin ETF, which would bring more institutional and retail money into crypto markets. SEC however has delayed its decision on Bitcoin ETFs putting pressure on Bitcoin price.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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