Crypto markets plummet as risk sentiment sinks

Crypto markets plummeted on Wednesday after the Fed rate decision. Risk sentiment sank, even as the Fed announced a pause in rate hikes. The U.S. Federal Reserve kept its interest rate steady at its policy meeting on Wednesday for the first time in well over a year. Fed officials have voted to keep the central bank’s interest rate at a target range of 5.00% to 5.25%. 

The Fed signaled on Wednesday, however, that its tightening cycle is not over yet and that its peak rate might be higher than anticipated. The FOMC policy statement following the conclusion of the meeting was hawkish, hinting at further rate hikes. Expectations of additional monetary tightening drove risk sentiment down, pushing cryptocurrency prices down. The ECB and BOJ policy meetings this week on Thursday and Friday may also affect risk assets.

Bitcoin price plummeted to the $25,100 level on Wednesday. If the BTC price declines, support can be found near $24,000, while resistance may be near $26,800. 

Ethereum price also sank on Wednesday, dropping sharply to the $1,650 level. If Ethereum's price declines, it may encounter support near $1,600, while if it increases, resistance may be located near $1,860.

BTC 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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