Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) Prices Rose Modestly After Jerome Powell's Transitory Statement on Inflation

BTC price retested the important resistance at $86,000, while ETH rose to $2,000 and XRP price hit $2.5. So, how will these blue-chip crypto market coins react as the S&P 500 index and gold prices surge?

Popular cryptocurrency prices, including Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP), rose modestly on Thursday morning after Jerome Powell’s transitory statement on inflation pushed up S&P 500 index and gold prices.

BTC price retested the crucial resistance at $86,000, while ETH rose to $2,000 and XRP price hit $2.5. So, how will these blue-chip crypto market coins react as the S&P 500 index and gold prices surge?

S&P 500 Index and Gold Prices Are Surging

Popular assets in the crypto market, like BTC, ETH, and XRP may benefit from the ongoing surge of other risky assets. The S&P 500 index, which tracks the biggest US companies, rose to $5,700, up by over 3% from the lowest point this month. Popular American indices like the Dow Jones and the tech-heavy Nasdaq 100 have also jumped.

Meanwhile, gold price has continued surging this year and is sitting at its all-time high. It has risen for the last three consecutive weeks, making it one of the year’s best-performing assets.

US stocks and gold continued rising after the Fed interest rate decision. The bank decided to leave interest rates unchanged and hinted that it would start tapering its quantitive tightening (QT) process. Most notably, Jerome Powell said that Trump tariff would cause transitory inflation, meaning that the bank would consider delivering more rate cuts this year. Mohamed El-Erian blasted that view, saying:

“I would have thought that, particularly after the big policy mistake of earlier this decade and given all the current uncertainties, some Fed officials would show greater humility. It’s simply too early to say with any regress of confidence that the inflationary effects will be transitory.”

The soaring S&P 500 index and gold prices are bullish for crypto prices like BTC, ETH, and XRP since these assets have some correlation.

BTC Price Technical Analysis

While the ongoing S&P 500 index and gold price rally is positive for the BTC price, technicals point to uncertainties ahead. The main risk is that Bitcoin price has formed a death cross pattern as the 50-day and 200-day Weighted Moving Averages crossed each other.

Bitcoin has also formed a rising wedge, which is made up of two ascending and converging trendlines. It often leads to a bearish breakout. As CoinGape wrote earlier, Bitcoin key liquidation levels point to more downside. If this happens, the most likely scenario is where BTC price crashes to $73,587, the highest point in March last year.

ETH Price Technical Analysis

While ETH price has bounced back from the lowest point this month, it remains below the important resistance point at $2,138. This is a crucial level since it was the neckline of the triple-top pattern at $4,000. The bearish ETH price forecast will remain as long as it is below that resistance level and the 50-day moving average at $2,300. More downside will be confirmed Ethereum price drops below $1,763.

XRP Price Technical Analysis

Ripple price rose after the end of the SEC vs Ripple case. However, it is notable that the coin has struggled to move above the resistance at $3, which is its make-or-break level. A clear bullish outlook will be confirmed if it rises above that level since it is the right and left shoulders of the head and shoulders pattern.

Therefore, there is a risk that it will resume the downtrend as investors sell the fact. A drop to $1 will be confirmed if it crashes below $1.9, the neckline.

Summary

The crypto market, US stocks, and gold prices rose after the Fed decision. However, crypto prices like Bitcoin, Ethereum, and XRP may struggle to sustain those gains, leading to an eventual crash.

Frequently Asked Questions (FAQs)

1. Why did S&P 500 index and gold prices surge after the FOMC decision?

The US macroeconomic data had a mixed reading in May, according to the minutes of the Federal Open Market Committee meeting. Members noted that the labor market remained strong despite some signs of slowdown in economic activity.

2. What is the most like BTC price forecast?

The main risk factor is that BTC price is still in a death cross, while it has formed a rising wedge, both of which point to more weakness. A move below $73,587 will increase the chances of a crash to $50,000.

3. What is the ETH price outlook?

The main point to note is that ETH price is still trading below the 50-day moving average at $2,300, which keeps the bearish outlook valid.