• Bitcoin (BTC) consolidated marginally below $17,000, as market volatility remained high following the recent Federal Open Market Committee (FOMC) minutes.
• Ethereum (ETH) also consolidated in today’s session, with momentum marginally shifting on Thursday.
• The U.S Federal Reserve agreed to maintain hiking rates, with inflation still near historic highs, and the bank expects a more aggressive rise in inflation, forecasting consumer prices to be at 3.5% in 2023.
The cryptocurrency markets have been on a rollercoaster ride over the past few weeks, with a flurry of activity and announcements driving market volatility. Bitcoin (BTC) and Ethereum (ETH) have been the main beneficiaries of this, and the two coins have seen their prices skyrocket to record-breaking highs in recent weeks. On Thursday, however, the market cooled off somewhat, as the Federal Open Market Committee (FOMC) published its minutes from the December meeting.
The minutes revealed that the U.S Federal Reserve agreed to maintain hiking rates, with inflation still near historic highs. The bank expects a more aggressive rise in inflation, forecasting consumer prices to be at 3.5% in 2023, higher than the 3.1% previously expected. This has caused some investors to take a more cautious approach towards the market, resulting in BTC consolidating marginally below $17,000.
Ethereum also remained close to recent highs on Thursday, although the coin did drop to an intraday low of $1,246.21. Despite the drop, sentiment remains somewhat bullish, as ETH continues to trade above its long-term resistance level at $1,230. The 10-day (red) and 25-day (blue) moving averages also remain close in proximity, maintaining chances of an upwards crossover.
Overall, it appears that both Bitcoin and Ethereum have settled into a period of consolidation, as the market awaits the next major catalyst. Investors will be keeping a close eye on the FOMC minutes for further clues about the direction of the market and the potential for further rate hikes. In the meantime, traders should remain vigilant and cautious, and keep an eye on key support and resistance levels.