Bitcoin jumps after Biden ends campaign

Bitcoin price edged higher on Monday, rising above the key $68,000 level. If BTC price declines, support can be found at $63,000, while resistance may be encountered at $69,000. 

Ethereum dipped on Monday, dropping below the $3,500 level. If Ethereum's price declines, it may encounter support near $3,360, while if it increases, resistance may be encountered near $3,560.

Bitcoin price jumped after US President Joe Biden announced on Sunday his decision to end his re-election campaign. Biden endorsed the candidacy of Vice President Kamala Harris for the Democrats. Republican former President Donald Trump, however, remains ahead at polls for winning the US elections in November.

Fluctuating risk sentiment is causing volatility in crypto markets. Cryptocurrency prices are affected by central banks’ interest rates. High interest rates are restricting economic growth putting pressure on risk assets, while the promise of rate cuts boosts crypto markets. The US Federal Reserve kept interest rates unchanged at its latest policy meeting, within a target range of 5.25% to 5.50%, as expected. 

Rate cut expectations in September are currently above 90%, providing support for risk assets. The uncertainty around Fed rate expectations is likely to continue in the coming months causing volatility in crypto markets. 

Crypto markets have been under pressure by the war in Gaza. Fears that the war will spread in the Middle East are promoting a risk aversion sentiment putting pressure on risk assets such as cryptocurrencies. Hopes of a ceasefire deal in Gaza, however, are propping up cryptocurrency prices.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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