Bitcoin eyes $90,000 for the first time in history

Bitcoin continued its upward path on Monday, registering a staggering growth. Bitcoin price surged from $79,000 to a new all-time high of $89,000, eyeing the $90,000 level for the first time in history. If the BTC price declines, support can be found at $65,000, while resistance may be encountered at the psychological level of $82,000. 

Ethereum price also moved in an uptrend on Monday, rising from $3,170 to $3,370. If Ethereum's price declines, it may encounter support near $2,360, while if it increases, resistance may be encountered near $3,570.

Crypto markets surged after the announcement of Donald Trump’s victory in the US Presidential elections and continued to gain strength this week. Trump’s proposed tariffs and tax policies will support economic growth, boosting high-risk assets, such as cryptocurrencies. In addition, Trump has openly declared his support of crypto markets, announcing that he will make the US ‘the crypto capital of the planet’. 

Cryptocurrency prices are also 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 cut interest rates by 25 basis points on Thursday, to a target range of 4.50% to 4.75%. The Fed had already launched its easing cycle in September, with an aggressive 50-bp rate cut, signaling the end of its restrictive monetary policy. 

Odds of another rate cut in December are currently approximately 65%. Fed Chair Jerome Powell has stated that the progress of disinflation is steady, and the labor market is strong, permitting a shift towards a more neutral monetary policy. 

Concerns of a broadening conflict in the Middle East are promoting a risk aversion sentiment, lowering the appeal of high-risk assets such as cryptocurrencies. The conflict between Israel and Hamas continues to escalate, putting pressure on risk assets such as cryptocurrencies. The conflict in the Middle East, however, has been raging for over a year and markets are starting to ignore this risk.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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