Crypto markets bounce back on renewed risk sentiment

Crypto markets bounced back after the Fed monetary policy meeting on Wednesday, on renewed risk sentiment. After a series of aggressive rate hikes last year, the Fed has finally decided to relax its hawkish policy, boosting cryptocurrency prices. The Federal Reserve raised interest rates by only 25 basis points at Wednesday’s meeting, bringing the benchmark interest rate to a target range of 4.50% to 4.75%. Even though inflation rates remain high, cooling prices have induced the Fed to scale back its rate hikes, providing support for riskier assets. 

In addition, the International Monetary Fund revised its global economic growth outlook, easing recession concerns. According to the IMF World Economic Outlook, the global economy is expected to grow by 2.9% this year, raising optimism for economic recovery. 

Bitcoin price skyrocketed above the $23,700 level on Wednesday. If the BTC price declines, support can be found near $22,390, while resistance may be encountered near $23,900. 

Ethereum price also surged to $1,650 on Wednesday. If Ethereum's price declines, it may encounter support near $1,518, while if it increases, resistance may be encountered near $1,660.

Global cryptocurrency market capitalization has started to recover this year and remains above $1 trillion. Crypto bulls are hoping that the recent cryptocurrency selloff has passed and that market confidence in the industry will be restored. Bears are fighting back, however, pushing cryptocurrency prices down. 

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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