Crypto bulls and bears fight for market control

Bulls and bears have been fighting to gain market control throughout the week, creating instability in the market. Neither side, however, has formed a decisive trend so far.

Curve Finance exchange suffered a breach earlier in the week. 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.

Bitcoin’s descent was halted on Thursday and its price steadied near $29,300. If the BTC price declines, support can be found near $28,600, while resistance may be encountered near $30,000. 

Ethereum traded sideways on Thursday, oscillating around the $1,840 level. If Ethereum's price declines, it may encounter support near $1,815, while if it increases, resistance may be located 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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