Crypto markets boosted by rise in stock markets

Bitcoin price surged on Monday, rising from $61,000 to $64,000. If BTC price declines, support can be found at $56,500, while resistance may be encountered at $66,500. 

Ethereum also gained strength on Monday, rising to the $3,400 level. If Ethereum's price declines, it may encounter support near $3,000, while if it increases, resistance may be encountered near $3,620.

Crypto markets gained strength on Monday, boosted by the rise in stock markets. Major stock indices rose on Monday on expectations of a Donald Trump win in the US elections in September. Crypto markets have been following stock market trends and the rise in stock markets propped up crypto markets as well. 

Fluctuating risk sentiment is causing volatility in crypto markets. 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 latest policy meeting, within a target range of 5.25% to 5.50%, as expected. 

Rate cut expectations in September were catapulted above 90% after the release of the US inflation report, providing support for risk assets. The uncertainty around Fed rate expectations will likely continue in the coming months causing volatility in crypto markets. 

Crypto markets have 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. Hopes of a ceasefire deal in Gaza, however, boosted cryptocurrency prices this week.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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