Global crypto market cap rises

Bitcoin rallied on Thursday, rising above the key $61,000 level. If BTC price declines, support can be found at $58,200, while resistance may be encountered at $64,700. 

Ethereum gained strength on Thursday, rising to the $3,450 level. If Ethereum's price declines, it may encounter support near $3,200, while if it increases, resistance may be encountered near $3,540.

Crypto markets plunged since last week and the global crypto market cap has dropped below $2.3 trillion. Global crypto market cap, however, registered small gains on Thursday.

Fluctuating risk sentiment is causing volatility in crypto markets. 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. The US Federal Reserve kept interest rates unchanged at its latest policy meeting, within a target range of 5.25% to 5.50%, as expected. Odds of a Fed rate cut in September are currently below 70%, while a rate cut by November is fully priced in. 

Crypto markets have 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. Israel threatens to declare an all-out war with Hezbollah, which will destabilize the region further.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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