Crypto markets decline post US CPI

Crypto markets declined on Thursday after the release of hotter-than-expected US CPI inflation data. Inflationary pressures in the US remain sticky, increasing rate hike expectations.

Increases in central banks’ interest rates sour risk sentiment, driving risk assets down. The Fed kept interest rates stable at its September policy meeting, but interest rates are likely to stay in restrictive territory for a longer period, hindering economic growth. Risk sentiment improved earlier in the week, as dovish Fed Rhetoric raised expectations of an end to rate hikes, but Thursday’s inflation data raised rate hike odds once again.

Low-risk sentiment in the past couple of weeks has been putting pressure on crypto markets. Global economic concerns are driving risk sentiment down, as prolonged economic tightening restricts economic growth. 

Moreover, the war between Israel and Hamas has soured risk sentiment putting pressure on cryptocurrencies. The conflict rages on in the Gaza area causing market turmoil. 

Bitcoin price edged lower on Thursday, dropping to the $26,700 level. If the BTC price declines, support can be found near $26,000, while resistance may be encountered near $28,100. 

Ethereum price plummeted on Thursday, testing the $1,530 level support. If Ethereum's price declines, it may encounter support near $1,500, while if it increases, resistance may be encountered near $1,660.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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