Cryptos fall following FOMC hawkishness
A bad week for Bitcoin and Ethereum
Hawkish Fed boosts dollar, weakens risky assets
SEC sets ether ETF launch timeframe
A roller coaster
Recent highs for Bitcoin and Ethereum have been down in recent days. Bitcoin's slide this week was driven by last Friday's stronger-than-expected NFP data, and spot Bitcoin ETFs stopped their 19-day net inflow run on Monday.
This marked the start of a turbulent week with macro release shocks. Crypto investors welcomed the weaker US CPI data on Wednesday, enabling digital assets to recover. The excitement swiftly faded when the Fed shattered hopes of a more accommodating policy.
In particular, the new dot plot showed one rate drop for the year, down from three. Cryptocurrencies often suffer from fewer Fed rate reduction, particularly when sector-specific innovations have been exhausted in the first half of 2024. Higher rates strengthen the US currency, which lowers crypto prices.
Headlines help cryptos
Cryptocurrencies overreact to information that should already be reflected in pricing due to their immaturity and accessibility to non-professional investors. Ethereum rose as SEC Chair Gary Gensler said spot-ether ETFs are coming. Given the SEC's rule modifications in May, the final approval is likely factored in, so bulls may respond favorably to forthcoming stories.
In other news, crypto supporter Donald Trump wants all remaining Bitcoin created in the US. The former US President is leading surveys, which might boost the crypto business.
BTC/USD falls after double top
BTCUSD has been selling since its rejection at $71,995, creating a double top. The 50-day simple moving average (SMA) has been a sturdy floor, halting the fall.
Bitcoin may test $66,000, the 50-day SMA, if selling forces continue. Retreats might end at $64,500 in April.
If the price reverses higher, the $71,955 double top might stop early gains. If the bulls break this barrier, they might hit $73,800, a record.
