Crypto markets volatile on fluctuating risk sentiment

Bitcoin price was volatile on Monday, dropping to the key $65,000 level in early trading and then surging to $67,000 later in the day. If BTC price declines, support can be found at $65,000, while further resistance may be encountered at $70,000. 

Ethereum price also slipped early on Monday, dropping below the $3500 level but regained the key  $3,500 level later in the day. If Ethereum's price declines, it may encounter support near $3,300, while if it increases, resistance may be encountered near $3,700.

Fluctuating risk sentiment caused volatility in crypto markets on Monday. 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 dropped from 70% to 60% on Monday putting pressure on 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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