Cryptocurrencies volatile amid market turmoil

Cryptocurrency prices were volatile on Thursday amid market turmoil. The political developments in the UK caused fluctuations in risk sentiment. Markets reacted favorably at first to British PM Liz Truss's resignation, resulting in stock markets and crypto markets bouncing upwards. As, however, markets began digesting the fact that the UK would be re-entering a period of political instability, recession concerns grew and cryptocurrencies pared their gains. 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.

Eurozone inflation cooled slightly in September dropping to 9.9% year-to-year, while UK inflation climbed back to 40-year highs of 10.1%. US annual inflation reached 8.2% in September, putting pressure on the Fed to continue raising interest rates. Inflation remains high in some of the world’s leading economies forcing Central Banks to tighten their monetary policies. Continuous rate hikes, however, risk tipping the countries’ economies into recession.

Bitcoin price climbed to the $19,300 level early on Thursday and then dropped back to $19,000, testing the support at this level. If BTC declines, support can be found at the psychological level of $19,000 and further down at $18,200, while resistance may be encountered near $19,800. 

Ethereum price rose above $1,300 on Thursday and then withdrew to $1,280. If Ethereum's price declines, it may encounter support at $1,260 and further down at $1,190. 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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