Crypto markets drop on regulatory concerns

Crypto bulls and bears are wrestling for control, causing volatility in cryptocurrency prices this week. The Securities and Exchange Commission filed 13 charges against Binance and its CEO, Changpeng Zhao. News that the US regulator is formally moving against Binance put pressure on crypto markets this week.

The bitcoin price dipped on Wednesday, dropping to $26,300. If the BTC price declines, support can be found near $25,400, while resistance may be encountered near $28,400.

The Ethereum price also declined on Wednesday, touching $1,840. If Ethereum's price declines, it may encounter support near $1,740, while if it increases, resistance may be encountered at $1,914.

US debt fears have been driving risk sentiment down over the past few weeks, putting pressure on cryptocurrencies. Risk sentiment fluctuates, causing volatility in risk assets such as cryptocurrencies.

US President Joe Biden and Republican House Speaker Kevin McCarthy have negotiated a deal that will raise the government's $31.4 trillion debt ceiling, preventing the US from going into default. The US Congress passed the measure to raise the US debt limit on Friday, and the US President signed the deal on Saturday. Increased risk sentiment provided support for cryptocurrencies.

Signs that major central banks are starting to wind down their hiking cycles provide support for risk assets. The Federal Reserve raised interest rates by 25 basis points at its latest monetary policy meeting, bringing the benchmark interest rate to a 16-year high target range of 5.00% to 5.25%. The US Central Bank has signaled that its hawkish policy is coming to an end, boosting risk assets.

BTC/USD 1h Chart

ETH/USD 1h 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.

Written by:
Myrsini Giannouli

Share the article: