Bitcoin price spikes on false news

Fake news of Bitcoin ETF approval caused Bitcoin price to spike above the $29,000 level on Monday. Cryptocurrency news platform Cointelegraph, reported on Monday that the BlackRock spot Bitcoin ETF had been approved by SEC. Bitcoin price surged at the news and crypto markets as a whole were boosted. The news was proved to be false soon afterwards and Bitcoin price retreated.

Bitcoin price spiked above the $29,000 level on Monday, then eased a little, dropping to $28,600. If the BTC price declines, support can be found near $26,500, while resistance may be encountered near $29,000. 

Ethereum price was also boosted on Monday, climbing to the $1,600 level. If Ethereum's price declines, it may encounter support near $1,500, while if it increases, resistance may be encountered near $1,660.

Crypto markets are under pressure, however, as geopolitical events sour risk sentiment. The war between Israel and Hamas is driving cryptocurrency prices down. The conflict rages on in the Gaza area causing market turmoil. 

Increases in central banks’ interest rates are also putting pressure on risk assets. Global economic concerns are driving risk sentiment down, as prolonged economic tightening restricts economic growth. 

The Fed kept interest rates stable at its September policy meeting, but interest rates are likely to stay in restrictive territory for a longer period, hindering economic growth. Risk sentiment has improved lately though, as dovish Fed Rhetoric has raised expectations of an end to rate hikes.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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