Rising risk sentiment boosts Cryptocurrency prices

Risk sentiment was renewed on Monday, boosting cryptocurrency prices. Stock markets and crypto markets have been experiencing a roller coaster ride, with prices seesawing, as risk sentiment turns from positive to negative almost daily.

The US Empire State Manufacturing Index on Monday was particularly disappointing for the state of the US economy, putting pressure on the dollar and favoring riskier assets. Stock markets and crypto markets rallied as risk sentiment rose. 

Fed rhetoric remains firmly hawkish, with FOMC policymakers Esther George and Mary Daly commenting over the weekend that the US Central Bank may need to step up its rate hikes to combat soaring inflation.

US inflation rose by 0.4% every month in September and annual inflation reached 8.2%. Soaring inflation is putting pressure on the Fed to continue raising interest rates. An increasing number of Central Banks are tightening their monetary policy to combat soaring inflation. Successive rate hikes and tighter fiscal policies give rise to global recession concerns putting pressure on cryptocurrencies.

Bitcoin climbed to $19,500 on Monday. If BTC declines, support can be found at $18,200, while resistance may be encountered near $19,800. 

Ethereum price also climbed on Monday, rising above $1,330. If Ethereum's price declines, it may encounter support at $1,190 and further down at the psychological level of $1,000. If Ethereum's price increases, resistance may be encountered near $1,400.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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