Bulls take over on upbeat crypto news

Crypto markets surged on Tuesday and continued to gain upwards momentum on Wednesday. A bullish trend has prevailed this week, propelling cryptocurrency prices upwards. Reports that large financial services institutions have announced major crypto initiatives have boosted crypto markets. BlackRock, the largest asset manager in the world applied what would be the first-ever spot bitcoin ETF in the U.S. In addition, Crypto exchange EDX Markets, which is backed by Citadel, Fidelity, and Schwab, launched operations on Tuesday. Renewed interest in the crypto industry has helped to offset the negative news from Binance and Coinbase and has fuelled a cryptocurrency rally on Tuesday.

Bitcoin price skyrocketed on Wednesday, touching $30,200. If the BTC price declines, support can be found near $24,800, while resistance may be encountered near $31,000. 

Ethereum price soared on Wednesday, rising to the $1,89o level. If Ethereum's price declines, it may encounter support near $1,630, while if it increases, resistance may be encountered near $1,900.

The U.S. Federal Reserve kept its interest rate steady last week to a target range of 5.00% to 5.25%. The Fed signaled, however, that its tightening cycle is not over yet and that its peak rate might be higher than anticipated. Expectations of additional monetary tightening put pressure on cryptocurrency prices. Fed Chair Jerome Powell testifying before the House Financial Services Committee on Wednesday, stressed that inflation still has a long way to go, increasing the odds of another rate hike in July’s meeting. Risk sentiment rose after Powell’s speech, however, as markets were anticipating a more hawkish stance.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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