Cryptocurrencies suffer fallout from Curve Finance exploit

Cryptocurrency prices were on the rise early on Monday but plummeted later in the day after reports that the Curve Finance exchange had suffered a breach. Three liquidity pools were hacked from the exchange, leading to $70 million in damage. The damage was eventually contained, but exposed the industry’s vulnerability, dragging down crypto markets on Monday.

Bitcoin price spiked upwards early on Monday but edged lower later, erasing the day’s gains, dropping to $29,200. If the BTC price declines, support can be found near $29,000, while resistance may be encountered near $29,600. 

Ethereum price also rose early on Monday and then declined, dropping to the $1,850 level. If Ethereum's price declines, it may encounter support near $1,845, while if it increases, resistance may be encountered near $1,880.

The U.S. Federal Reserve raised interest rates by 25 basis points last week after holding its interest rate steady at its June policy meeting. Fed officials raised the central bank’s interest rate to a target range of 5.25% to 5.50% last week, the highest level in 22 years putting pressure on crypto markets. Increases in central banks’ interest rates sour risk sentiment, driving risk assets down. 

The Fed’s message moving forward was ambiguous, aiming to give the central bank flexibility towards adjusting its future monetary policy and adopting a data-dependent approach. Crypto markets edged higher towards the end of last week but failed to maintain an uptrend. 

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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