Bitcoin rises above the key $31,000 level

Bitcoin price surged on Monday, rising above the key $31,000 level. If the BTC price declines, support can be found near $29,600, while resistance may be encountered near $31,400. 

Ethereum price also rose on Monday, touching $1,960. If Ethereum's price declines, it may encounter support near $1,817, while if it increases, resistance may be encountered near $2,016.

Crypto markets gained strength earlier in June on reports that large financial services institutions have announced major crypto initiatives. Crypto markets showed signs of recovery but could not maintain a bullish momentum last week. The cryptocurrency rally was halted as stronger-than-expected U.S. economic data increased Fed rate hike expectations. Signs of cooling US inflation, however, provided some support for risk assets, and most major cryptocurrencies gained strength over the weekend and continued to advance on Monday.

The U.S. Federal Reserve kept its interest rate steady at its June meeting to a target range of 5.00% to 5.25%. The Fed signaled, however, that its tightening cycle is not over yet and that its peak rate might be higher than anticipated. 

Fed Chair Jerome Powell reinforced this notion, stressing that US inflation is still at twice the Fed’s 2% target, and warned that the process of getting inflation back to target still has a long way to go. Powell hinted that consecutive rate hikes may be resumed if required, stating that the majority of FOMC members are in favor of two more rate hikes this year. Risk sentiment dropped as the Fed showed signs of resuming its hawkish stance.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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