Crypto markets quiet ahead of Fed rate decision

Crypto markets were quiet on Tuesday, with major cryptocurrencies trading with low volatility ahead of Wednesday’s Fed rate decision. 

Bitcoin price oscillated around $26,000 on Tuesday. If the BTC price declines, support can be found near $25,400, while resistance may be encountered near $26,800. 

Ethereum traded sideways with low volatility on Tuesday, fluctuating around the $1,740 level. If Ethereum's price declines, it may encounter support near $1,720, while if it increases, resistance may be encountered near $1,860.

Risk sentiment remains uncertain ahead of key events this week. US CPI data released on Tuesday showed that inflation is cooling, increasing the odds of a pause in Fed rate hikes. The U.S. Federal Reserve is holding its next policy meeting on Wednesday and a pause in the Fed’s rate hikes may boost risk assets. The ECB and BOJ policy meetings this week on Thursday and Friday respectively, may also affect risk assets.

Crypto bulls and bears are wrestling for control, causing volatility in cryptocurrency prices. The Securities and Exchange Commission filed 13 charges against Binance and its CEO, Changpeng Zhao. Reports that the US regulator is formally moving against Binance put pressure on crypto markets last week, causing volatility in cryptocurrency prices.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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