Cryptocurrencies edge lower on recession fears

Risk sentiment remained low on Wednesday, putting pressure on cryptocurrency prices. The release of the EU and the UK inflation reports fueled global recession concerns dragging down cryptocurrency prices. Stock markets and crypto markets have been experiencing a roller coaster ride, with prices seesawing, as risk sentiment turns from positive to negative almost daily.

Eurozone inflation cooled slightly in September dropping to 9.9% year-to-year, while UK inflation climbed back to 40-year highs of 10.1%. US annual inflation reached 8.2% in September, putting pressure on the Fed to continue raising interest rates. Inflation remains high in some of the world’s leading economies forcing Central Banks to tighten their monetary policies. Continuous rate hikes, however, risk tipping the countries’ economies into recession.

Bitcoin price dropped to the $19,100 level on Wednesday as a bearish trend prevailed. 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 $19,800. 

Ethereum price fell below the $1,300 level on Wednesday. If Ethereum's price declines, it may encounter support at $1,260 and further down at $1,190. If Ethereum's price increases, resistance may be encountered near $1,400.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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