Global crypto market cap plummets

Bitcoin price plunged below the $60,000 level on Monday but recovered some of its losses later in the day and regained the key $60,000 level. If BTC price declines, support can be found at $56,600, while resistance may be encountered at $66,500. 

Ethereum price declined to the $3,250 level early on Monday then rallied and rose back to $3,350. If Ethereum's price declines, it may encounter support near $3,000, while if it increases, resistance may be encountered near $3,620.

Crypto markets plunged last week and continued to decline on Monday. The global crypto market cap has lost many billions of dollars in value in the past few days, dropping below $2.4 trillion.

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 policy meeting on Wednesday, within a target range of 5.25% to 5.50%, as expected. Odds of a Fed rate cut in September are currently around 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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