- Bitcoin[1] and Ether[2] cling to psychological levels
- Investors remain cautious ahead of FOMC[3]
- Risk sentiment shifts to safe-haven assets (for now)
In the midst of an tumultuous geopolitical backdrop and heightened inflationary pressures, risk appetite has continued to sour, weighing on cryptos and equities alike.
Although Bitcoin[4] and Ether have shredded over 50% of gains since peaking in November last year, the collapse of Terra (Luna) and a softer Dollar[5] have further assisted in the catalyzation of price action.
With a range of high impact economic data expected to be released throughout next week, Bitcoin (BTC) and Ether (ETH) may remain vulnerable at their respective psychological levels.
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With central banks clamping down on inflation (through interest rate hikes and other quantitative tightening measures), stable coins remain under scrutiny after Terra wiped out $Billions from the total market capitalization of the crypto sphere.
However, at the time of writing, Bitcoin continues to eye the $30,000 handle while Ether aims to gain traction above $2,000.
If the upcoming data proves to surpass expectations, there is a probability that digital assets may benefit from a more optimistic outlook.
On the contrary, if price pressures remain on the rise, a break below $26,000 (BTC) and $1,700 (ETH) could lead to a resumption of the bearish move.
--- Written by Tammy Da Costa, Analyst for DailyFX.com
DailyFX[10] provides forex news and technical analysis on the trends that influence the global currency markets.
