Cryptocurrency prices soar as global recession fears ease

Improved risk sentiment pushed the safe-haven dollar down this week, benefiting stock and crypto markets. The appointment of Rishi Sunak as the UK’s next PM brought a measure of stability to the UK, after the political upheaval of the past few months. 

British PM Sunak stated on Wednesday that economic stability will be at the heart of his administration’s agenda eliciting a positive reaction from markets. Foreign minister James Cleverly stated on Wednesday that the much-anticipated new fiscal plan, which had been scheduled for Oct. 31 may be delayed as the government would need more time to draft a solid budget. Jeremy Hunt, who will remain as Chancellor of the Exchequer, met with BOE Governor Andrew Bailey on Wednesday in an attempt to promote cooperation between the government and the BOE. 

Global developments are causing fluctuations in risk sentiment, creating crypto market volatility. Stock and crypto markets have been experiencing a roller coaster ride, with prices seesawing, as risk sentiment turns from positive to negative almost daily. In Japan, currency interventions are causing market turmoil, with the Yen seesawing wildly. 

Bitcoin continued trading above the key $20,000 level on Wednesday, touching $20,900. If BTC declines, support can be found at the psychological level of $19,000 and further down at $18,200, while resistance may be encountered near $21,800. 

Ethereum price climbed above the $1,500 level resistance on Wednesday, reaching $1,580. If Ethereum's price declines, it may encounter support at $1,260 and further down at $1,190, while if it increases, resistance may be encountered near $1,780.

This week, the ECB monetary policy meeting on Thursday and the BOJ policy meeting on Friday is expected to cause market volatility that will likely extend to crypto markets as well. 

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: