Crypto Price Today: Bitcoin, Ethereum fall up to 3% on Fed’s hawkish tone; Solana, Cardano defy trends with 2% gain

While Bitcoin’s (BTC) resilience over the last one hour was palpable, this crypto asset is still trading down nearly 3% from the previous session. Around 12 pm today, it was trading at $61,035.66. The slide in BTC had an impact on other altcoins including Ethereum (ETH), Tether, Dogecoin, Avalanche, and Shiba Inu which were down by up to 2.5%.

Altcoins that were trading in the green around this time included Solana, XRP, Toncoin, Cardano, and Tron which gained up to 2%.

The crypto market's lackluster trade could be attributed to the remarks by US Federal Reserve Chair Jerome Powell's hawkish statement which said that the Central Bank needs more evidence on inflation to decide on the timing of the rate cuts. Moreover, the May jobs data was reported higher-than-expected.

Bitcoin's decline reflects both concerns and opportunities in the crypto market, Sathvik Vishwanath, Co-Founder & CEO at Unocoin said as he highlighted strong trading volume of $20 billion over the past day, indicating significant market activity. "The news suggests that large holders of Bitcoin, known as whales, are piling up, indicating confidence in a potential year-end rally," he said.

Vishwanath said that BTC is currently finding support within an ascending channel of around $61,700 though it faces resistance at the 50-day EMA at $62,210, suggesting a limited immediate upside. "With the RSI at 48, indicating neutral sentiment, the market is depending on Bitcoin's ability to hold above $61,700 to avoid a deeper decline to the $60,700 and $60,000 support levels," he added.

Source: CoinMarketCap

On the BTC price movement, CoinDCX Research Team in a note said that the current drop filled most of the weekend BTC CME gap, though another gap remains around $59,700-$59,800 which suggests that BTC could drop further to fill it.

Currently, Solana is outperforming BTC and ETH due to ETF hype, the note said, adding that the market is slightly negative due to bearishness in BTC.

"Bitcoin has been consolidating around $61,000 for the past 24 hours, following some profit-taking by traders. It's having a hard time breaking past the $63,600 resistance level. If it doesn't manage to hold its current position, Bitcoin might drop back to the $60,800 support level, with bulls trying to keep it above that mark," Edul Patel, CEO of Mudrex warned.

He pins his hopes on approval to Ether ETFs which he said could improve the market sentiments.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)