Cryptocurrencies broke the bearish trend they had been experiencing in recent weeks. However, the market today plunged by 1.2% due to Federal Reserve (Fed) Chairman Jerome Powell’s statement, in which he admitted that inflation is causing significant economic hardship for US residents. As a result, the central bank is likely to raise the pace of rate hikes again, which could be hostile to both Wall Street stocks and the cryptocurrency ecosystem, leading small investors to abandon risky assets and swap them for more stable ones.
Currently, Bitcoin is trading at a worrying level of USD 22,099.09, and there are investors who believe that a drop below the USD 22,000 level could trigger a reversal to USD 19,000. In the last 24 hours, the most traded currency in the market cooled by 1.3%, accumulating a 4.5% drop in the last week. This is a discouraging outlook for the token, which seeks to resist offensives by US regulators.
The situation is also worrying for Ethereum, whose current value is $1,558.47 and whose support level is around $1,450, far from the $1,600 it reached in February. Ethereum plunged 0.4% in the last 24 hours and accumulated a drop of 3% for the week.
As for the main altcoins, BNB, the cryptocurrency of the Binance platform, trades at $287.77, Cardano (ADA) is at $0.325214, and Solana (SOL) is at $19.41. Although the trading volume of the assets has increased, the general outlook of the cryptocurrency market is still worrying due to the economic uncertainty caused by inflation and the possibility of a rise in interest rates by the FED.
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