In the minutes of the Federal Open Market Committee announced yesterday, officials gave messages of determination to reduce inflation to 2 percent, and it was stated that tight monetary policies would be continued for a while.
Global economies continue to struggle with the inflation problem. The US economy is also trying to beat inflation with interest rate hikes. Although the consensus in the minutes of the FED’s last meeting held yesterday evening that interest rate hikes would continue until the inflation fell to the 2 percent target, pressured the sector, it was seen that these pressures disappeared very quickly.
Despite the decline in inflation in the last 3 months, FED members, who expect further acceleration in the downward direction, also underlined that the risks are on the downside. Markets, which previously thought that the Fed would put on hold after the 25 basis point rate hike in March, now have a 25 basis point rate hike pricing in May and June. The FED’s stance on inflation, which is the main reason for this, is also very clear.
Before the announcement of the minutes yesterday, the main indices in the USA fell by 2 percent during the day. In parallel with the stock markets, there were minor retracements in the crypto money markets.
bitcoin
Bitcoin, which has been trying to push itself above $25,000 since last week, has failed in these attempts. With the sales that continued for two days, it reached the level of 24,000 dollars, which can be used as an intermediate support point. If the selling pressure continued, the asset was expected to drop to $22,800. Bitcoin, which fell to the lowest level of the day at $ 23,650 just before the announcement of the FED decision, experienced recovery in its price after the announcement of the FED minutes and closed the day at $ 23,788. Bitcoin, which started the new day with a rise, continues to be priced above 24 thousand dollars at the moment. Bitcoin needs to avoid the $24,085 region to hit $25,000. A reversal to the $24,500 region could signal bullishness. In the case of an extended rally, Bitcoin could likely test the second major resistance level at $24,992 and the $25,000 zone. A sag below the $24,085 level would activate the first major support level at $23,684. The second support level of the asset is located at $23,178.
Ethereum
Ethereum struggled to enter the $1,700 region, similar to Bitcoin’s $25,000 resistance yesterday. Moving below the $1,650 and $1,670 support areas, Ethereum dropped to the $1,607 level just before the minutes were released. After the minutes were announced, Ethereum, which experienced recovery in price, closed the day in the $ 1.616 region. The asset, which started the new day with a rise, continues to be priced above the $ 1.660 level at the moment. It is crucial for Ethereum price to avoid below the $1,635 zone to target $1,700. The first resistance level is located at 1.675, while the second resistance level is located in the $ 1.707 region. The next level to watch for Ethereum, which has managed to rise to these levels, is the third resistance level, the $ 1,779 zone. In a possible regression scenario, our first support level is located at $ 1,603, while our second support point is located at $ 1,563. A sag below these levels could activate the third support level from the $1,491 zone.
