BTC/USD, ETH/USD Weighed Down by the Fed

BTC/USD, ETH/USD Weighed Down by the Fed

Table of Contents


Cryptocurrency Outlook: Bearish

  • BTC/USD erases August good points as financial turmoil drives sentiment decrease
  • ETH/USD ends six-week rally, July low looms
  • US Financial knowledge and Fed coverage stay outstanding drivers of market sentiment

Bitcoin and Ethereum Dragged Down by a Stronger Greenback

Bitcoin is presently down by 12% for the week (on the time of writing) as digital property stay weak to financial coverage which has been driving USD energy.

Go to DailyFX Education to Learn About the Impact of Politics on Global Markets

The identical basic elements which were driving markets because the invasion of Ukraine stay a priority for cryptocurrency. With vitality costs, rampant inflation and dampened sentiment weighing on danger property, charge expectations have just lately gave the impression to be the first catalyst for price action.

After being rejected by the $25,000 resistance degree late final week, the discharge of the FOMC minutes on August 17 revealed that the Federal Reserve will proceed to be pursue QT (quantitative tightening) by elevating charges aggressively till inflation has been tamed. This poses and extra risk to the broader crypto market whereas supporting the safe-haven Dollar.

Bitcoin (BTC/USD) Day by day Chart

Chart ready by Tammy Da Costa utilizing TradingView

ETH 2.0 is anticipated to be launch on September 15th which might efficiently full the transition to a proof of stake (PoS) community. With the merge anticipated to cut back the vitality consumption for processing transactions, Ethereum has ended its six-week rally, falling in direction of the July low at $1,656.

Ethereum (ETH/USD) Weekly Chart

Bitcoin/Ethereum Outlook: BTC/USD, ETH/USD Weighed Down by the Fed

Chart ready by Tammy Da Costa utilizing TradingView

For the rest of the month, Core PCI, Fed Chair Powell’s speech, Michigan sentiment and the Jackson gap financial coverage symposium going down from 25 – 27 August will probably reverberate all through crypto markets.

Bitcoin/Ethereum Outlook: BTC/USD, ETH/USD Weighed Down by the FedBitcoin/Ethereum Outlook: BTC/USD, ETH/USD Weighed Down by the FedBitcoin/Ethereum Outlook: BTC/USD, ETH/USD Weighed Down by the Fed

DailyFX Economic Calendar

For these unfamiliar with this occasion, the annual convention hosts outstanding market gamers together with central bankers and finance ministers from throughout the globe. With this yr’s matter centered on ‘reassessing constraints on the financial system and coverage’, Chair Powell is within the highlight as traders await affirmation on the trajectory of charge hikes for the rest of the yr. If feedback from the symposium prone to make clear the severity of the present disaster or if charges present no signal of easing anytime quickly, cryptos downtrend might see Bitcoin retesting the $18,000 mark.

— Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and observe Tammy on Twitter: @Tams707





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