The Fed's Hawkish Policy Strikes a Heavy Blow to the Crypto Market - Strategies Should Be Considered

Recent decisions by the FED are sending a strong balancing blow to the entire risk asset market. Official reports from the FOMC show that officials are not hesitating to maintain a hawkish stance, even though inflation is gradually cooling down. This means the crypto market will face significant pressure in the near future.

Concerns Over High Inflation and Central Bank’s Balancing Act

Although inflation shows signs of slowing, the FED warns that this process is progressing more slowly and unevenly than expected. Most notably, FOMC members have sent a firm signal: if inflation surges again, they do not rule out further interest rate hikes. This message has completely dashed hopes for upcoming rate cuts.

This tightening pressure has caused government bond yields to spike, creating a domino effect across global markets. Capital is starting to flow out of risk assets, forcing Bitcoin, Ethereum, and other cryptocurrencies to face heavy sell-offs.

Bitcoin Drops to Warning Levels - Downtrend Structure Still Firm

From a peak of $69,000 a few weeks ago, Bitcoin has plunged to around $67,350 currently, down 1.62% in the past 24 hours. The price is well below the 50-day SMA at around $82,600, confirming that the downtrend structure still dominates the market. The RSI at 34 indicates weak recovery momentum, despite moving out of oversold territory.

From a support perspective, the $64,000 - $65,000 zone remains the last cushion for bulls. If broken, BTC could continue downward to $60,000 - $62,000. Conversely, strong resistance levels at $70,000 and $75,000 - $76,000 are waiting for traders to sell. The gap to overcome is significant, and the pressure from the FED’s hawkish policies remains the main focus.

Ethereum and XRP: Struggling to Survive Amid Turmoil

Ethereum is currently trading around $2,010, down 2.89% for the day. Although it rebounded from the $1,900 - $1,960 zone a few days ago, selling pressure persists. The BOP indicator shows some positivity, but the CMF flow remains negative, indicating weak buying support.

Critical support lies at $1,800 - $1,900, while the nearest resistance levels are at $2,050 and $2,200. If ETH cannot find a recovery opportunity, lower levels will soon be tested.

XRP is the most heavily attacked asset. It has fallen sharply from its $2.00 peak earlier this year and is now at $1.41 after a 3.03% drop. The price is tightly squeezed below the Bollinger Bands between ($1.46) and lacks active buyers. The support zone at $1.35 - $1.25 is a critical boundary. If broken, the risk of a deeper bottom is very high.

Summary: Balancing Risks and Opportunities

With the FED’s hawkish monetary policy and capital flow reversal, the crypto market is in a trust-testing phase. Some traders are choosing to buy the dip at key support levels, while others prefer to wait for clearer confirmation signals.

Nevertheless, key support levels (BTC $64K - $65K, ETH $1,800 - $1,900, XRP $1.25 - $1.35) will be decisive in the coming weeks. Keep a close eye on market reactions and prepare your own strategy!

This article is for informational purposes only and does not constitute investment advice. Carefully consider the risks before making any decisions.