Over the past several weeks, two of the world’s most prestigious cryptocurrencies are constantly moving in an upward direction. But the recent price hike is the biggest of all.
Experts are skeptical that the United States Federal Reserve’s meeting on 22nd March might pose red flags regarding the price of cryptocurrencies.
As the things stand, Fed officials are not sure about whether to increase the interest rate or not. However, if the Fed officials increased the interest rate, this would give momentum to the USD.
As the result, the prices of cryptocurrencies will halt. But there are strong rumors that Fed officials might not spike the interest rate too much. This for sure is encouraging news for crypto traders.
Bitcoin Price Performance and Future Expectations
Bitcoin is the biggest cryptocurrency to date in terms of its price and market cap. On Wednesday morning the price of Bitcoin has seen a rapid rise. This is the highest the currency has peaked over the past 9 months.
By the end of Wednesday evening, BTC was exchanging hands above the $28K mark. But, investors are not ready to break the bank in BTC right now.
They are waiting for the Fed’s decision about the interest rate. There are rumors that Fed is likely to increase the interest rate by 25 bps.
The recent surge in the price of Bitcoin by 40% resulted due to the U.S. banking sector crisis. As a result, investors immediately started to pull out money from the stock market.
Bitcoin has emerged as the most lucrative investment prospect for the future. The current price of Bitcoin is the highest it has touched since June 2022.
As of now, investors think that Bitcoin is a more reliable investment opportunity than banking stocks. As the things stand the investors’ sentiment about cryptocurrency is positive.
But the future price of Bitcoin solely depends on the Federal Reserve’s decision.
The Price of Ethereum (ETH) and Its Future Outlook
As of this writing, the price of Ether (ETH) is $1800. The currency’s global trade volume has jumped over $10.7 billion. Over the past several days, Ether has gained by 4%.
Ether is the second largest cryptocurrency in terms of price and market cap. It is important to note that Ether is a stablecoin.
Experts have predicted that if ETH managed to surpass the current level of resistance above the $1800 mark by the end of this week, it will surge further high.
However, the Fed’s decision will play a decisive role in giving Ether the momentum it needed. Any favorable news regarding the interest rate hike will set the entire cryptocurrency market upward.
As the things stand, ETH’s technical indicators show that the currency is in the right direction to achieve the $1900 mark. But investors are careful about making investments in digital currencies.
Once the Fed will make its decision about the interest rate, investors will react to that and decide whether to invest in the market or not.
In case, if United States Federal Reserve decided to increase the interest rate higher than 25 bps, the ether price will plunge. In case of any downward momentum, ETH/USD will find support in between the $1,700 to $1,620 price range.
It is important to mention that Bitcoin and Ether are the only currencies whose prices have surged. Some of the other currencies such as Dogecoin, Cardano, and BNB have also seen a surge in their prices.
So, if you are looking to invest in cryptocurrencies you should look for these options as well. Although the cryptocurrency market has seen a massive rise in trade volume, things can go either way following the Fed’s decision.
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