Renewed risk sentiment props up Cryptocurrencies

Crypto markets have been benefitting from a risk on sentiment this 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. 

Bitcoin remained strong on Wednesday, trading around the $35,500 level. If BTC price declines, support can be found near $33,400, while resistance may be encountered near $36,000. 

Ethereum edged higher on Wednesday, climbing to the kay $1,900 level. If Ethereum's price declines, it may encounter support near $1,780, while if it increases, resistance may be encountered near $2,000.

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 voted last week 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 last week 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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