Cryptocurrencies rally as markets see the end of rate hikes

Crypto markets rallied on Wednesday after reduced Fed rate hike expectations provided support for risk assets. 

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. There is considerable doubt on whether the Fed will continue hiking rates after this week’s rate increase. Cooling US inflation rates have shifted Fed interest rates expectations towards a less hawkish direction, boosting crypto markets. 

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.

The bitcoin price rose on Wednesday, climbing to $29,600. If the BTC price declines, support can be found near $29,000, while resistance may be encountered near $30,400. 

Ethereum price also gained strength on Wednesday, climbing to the $1,870 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

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

Written by:
Myrsini Giannouli

Share the article: