Bitcoin plummets on Binance concerns

Crypto markets dropped on Monday weighed down by concerns about Binance. Binance is the largest crypto exchange in the world and was sued by the Securities and Exchange Commission last month. Reports of fresh economic transgressions involving Binance CEO Changpeng Zhao put pressure on cryptocurrencies on Monday.

Bitcoin price plummeted on Monday, dropping below the key $30,000 level, and touching $29,000. If the BTC price declines, support can be found near $29,000, while resistance may be encountered near $30,400. 

Ethereum price also tanked on Monday, dropping to the $1,840 level. If Ethereum's price declines, it may encounter support near $1,817, while if it increases, resistance may be encountered near $1,930.

Signs of cooling US inflation provide support for risk assets, boosting risk sentiment as future rate hike expectations decrease. US inflation slowed more than expected in June, weighing the dollar down and boosting risk assets. The U.S. Federal Reserve kept its interest rate steady at its June policy meeting for the first time in well over a year to a target range of 5.00% to 5.25%. 

The Fed has signaled that its tightening cycle is not over yet, and market odds are in favor of another rate hike at the next policy meeting this week. Most analysts expect that the US central bank will raise interest rates by 25-bp on Wednesday, putting pressure on crypto markets. 

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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