Cryptocurrencies fall after hawkish Fed speech

Cryptocurrencies have come under pressure the past few months amid expectations of a more hawkish monetary policy by the Fed and other major Central banks. Rising geopolitical tensions and soaring inflation rates also promote a risk-aversion sentiment, which doesn’t benefit the cryptocurrency market. On Monday and Tuesday, most major cryptocurrency prices rose a little, but could not hold onto their gains after The Federal Reserve signalled that it would start raising its benchmark interest rate as early as March. Bitcoin and Ethereum prices fell after Fed Chair Powel’s speech was more hawkish than expected and hinted at a tighter monetary policy. 

Recent statements from regulatory bodies around the world about launching a crackdown on cryptocurrencies are also reducing the appeal of cryptocurrencies. On Monday, the Monetary Authority of Singapore published a set of guidelines that restrict cryptocurrency marketing and advertising, becoming the latest in a number of countries such as Russia, Italy, Spain, and the UK, to propose restrictions on mining and advertising, putting pressure on cryptocurrencies. While other countries are trying to control what they perceive as highly-speculative assets though, Switzerland seems to welcome the cryptocurrency industry and has been passing legislation that is favourable to the advancement of the crypto market to enable the country to be ahead of developments in the industry. 

Bitcoin fell below $36,200 on Wednesday, and if it continues its downtrend, it may find support around $29,000, while if the price of Bitcoin goes up, it may find resistance at $43,000 and further up at $44,300.

Ethereum fell below $3,400 and if the downtrend continues, it may find support around $2,150 and further down at $1,700. In case its price goes up, it may find resistance around $3,220 and further up around $3,400.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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