Bitcoin remains strong on hopes of ETF launch

Bitcoin prices surged earlier in the week on news that the iShares Bitcoin Trust had been listed on the Depositary Trust & Clearing Corporation, which clears Nasdaq trades. Bitcoin prices spiked to the $34,000 level on Tuesday, and crypto markets, in general, were boosted. iShares Bitcoin Trust was soon delisted from the DTCC and crypto markets pulled back. On Wednesday, however, optimism over a Bitcoin ETF launch soon provided support for cryptocurrencies.

Bitcoin remained strong on Wednesday, touching the $35,000 level for the first time since May. If the BTC price declines, support can be found near $28,500, while resistance may be encountered near $37,000. 

Ethereum traded sideways on Wednesday, oscillating around the $1,780 level. If Ethereum's price declines, it may encounter support near $1,500, while if it increases, resistance may be encountered near $1,850.

Crypto markets are under pressure, however, as geopolitical events sour risk sentiment. The war between Israel and Hamas is driving cryptocurrency prices down. The conflict rages on in the Gaza area, causing market turmoil. 

Increases in central banks’ interest rates are also putting pressure on risk assets. Global economic concerns are driving risk sentiment down, as prolonged economic tightening restricts economic growth. 

The Fed kept interest rates stable at its September policy meeting, but interest rates are likely to stay in restrictive territory for a longer period, hindering economic growth. Risk sentiment has improved lately though, as dovish Fed Rhetoric has raised expectations of an end to rate hikes.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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