Bitcoin slips below $67,000

Bitcoin attempted to breach the key $70,000 level on Wednesday but dropped below $67,000 on Thursday. If BTC price declines, support can be found at $65,800, while further resistance may be encountered at $72,000. 

Ethereum price also slipped on Thursday, dropping below the key $3500 level. If Ethereum's price declines, it may encounter support near $3,300, while if it increases, resistance may be encountered near $3,900.

Renewed risk sentiment boosted crypto markets on Wednesday after the release of the US inflation report. US CPI data released on Wednesday showed that disinflation in the US is finally progressing, raising Fed rate cut expectations and promoting a risk on sentiment. Headline inflation eased to 3.3% year-on-year in May from 3.4% in April, dropping below expectations of a 3.4% print. Risk sentiment dropped on Thursday, however, as markets had time to digest the Fed’s message.

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. As expected, the US Federal Reserve kept interest rates unchanged at its policy meeting on Wednesday, within a target range of 5.25% to 5.50%. Odds of a rate cut in September rose above 70% this week on easing US inflationary pressures propping up risk assets. 

Crypto markets have also 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. 

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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