Cryptocurrency prices waver ahead of US inflation report

Crypto markets wavered on Monday after surging last week and most major cryptocurrencies struggled to hold onto their gains. The highly-anticipated US CPI inflation report coming up on Tuesday has soured risk sentiment.

Bitcoin price edged lower on Monday, dropping to the $36,500 level. If the BTC price declines, support can be found near $34,500, while resistance may be near $38,000. 

Ethereum traded sideways on Monday, oscillating around the $2,060 level. If Ethereum's price declines, it may encounter support near $1,780, while if it increases, resistance may be encountered near $2,140.

Cryptocurrencies surged last week on expectations that the Securities and Exchange Commission (SEC) will shortly grant spot Bitcoin exchange-traded funds (ETF) applications. BlackRock and other institutions have applied for a Bitcoin ETF, which would bring more institutional and retail money into crypto markets. The SEC has been hesitant regarding the future of Bitcoin ETFs, but it seems that the first batch of Bitcoin ETF applications will gain approval within the next few days and reportedly by November 17th. BlackRock has also filed an ETH spot ETF for approval, causing Ethereum prices to surge. 

Crypto markets benefitted from a risk on sentiment last week. Crypto markets have been under pressure in the last month as the war between Israel and Hamas soured risk sentiment. The conflict in the Gaza area continues, but the risk of the crisis spreading to the region has decreased and risk sentiment is renewed. 

Increases in central banks’ interest rates are putting pressure on risk assets. Most major central banks, however, are hitting pause on rate hikes, propping up crypto markets. FOMC members have voted to keep interest rates unchanged at a 22-year high within a target range of 5.25% to 5.50%. The Fed’s decision to pause rate hikes has increased risk appetite, boosting cryptocurrencies, especially since markets anticipate that the Fed has reached its rate ceiling.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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