Crypto markets plummet as risk sentiment sours

Crypto markets plummeted on Thursday, after increased Fed rate hike expectations soured risk sentiment, driving risk assets down. 

The U.S. Federal Reserve raised interest rates by 25 basis points on Wednesday after holding its interest rate steady at its June policy meeting. Fed officials voted unanimously on Wednesday to raise the central bank’s interest rate to a target range of 5.25% to 5.50%, the highest level in 22 years. 

The Fed’s decision to resume economic tightening, however, was widely anticipated and had already been priced in by markets. The Fed’s message moving forward was ambiguous, aiming to give the central bank flexibility towards adjusting its future monetary policy and adopting a data-dependent approach.

Crypto markets dropped earlier in the week, weighed down by concerns about Binance. Binance is the largest crypto exchange in the world and was sued by the Securities and Exchange Commission last month. Reports of fresh economic transgressions involving Binance CEO Changpeng Zhao put pressure on cryptocurrencies.

Bitcoin price tanked on Thursday, dropping to $29,200. If the BTC price declines, support can be found near $29,000, while resistance may be encountered near $30,400. 

Ethereum price also declined on Thursday, dropping to the $1,850 level. If Ethereum's price declines, it may encounter support near $1,817; if it increases, resistance may be near $1,930.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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