Cryptocurrencies weighed down by increased rate hike expectations

Cryptocurrency prices were under pressure on Thursday, as rate hike expectations increased. Most major cryptocurrencies traded mostly sideways on Thursday, suffering only minor losses but failing to gain upward momentum. Uncertainty is dominating crypto markets preventing cryptocurrencies from forming a clear trend.  

Prolonged rate hikes fuel global recession concerns, driving risk assets down. Robust US labor data on Thursday and hawkish Fed rhetoric boosted Fed rate hike odds. Hotter-than-expected Eurozone inflation and hawkish ECB rhetoric also increased ECB rate hike odds on Thursday.

US inflation data last week showed that price pressures in the US remain high and are not easing at the pace anticipated, weighing cryptocurrency prices down. Market expectations of the Fed peak interest rate continue to rise on hotter-than-expected US price pressures, putting pressure on crypto markets. The Fed might raise interest rates for longer than previously expected, putting pressure on crypto markets. Current market odds lean towards further tightening in the upcoming Fed meetings and an increase in interest rates up to 5.25%.

Bitcoin price oscillated around the $23,400 level on Thursday. If the BTC price declines, support can be found near $22,800, while resistance may be encountered near $24,600. 

Ethereum price also traded sideways on Thursday, fluctuating around $1,640. If Ethereum's price declines, it may encounter support near $1,560; if it increases, resistance may be near $1,680.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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