Crypto markets weaken amid Gaza war

Crypto markets continued to decline on Tuesday, even though overall risk sentiment improved. The war erupting between Israel and Hamas has soured risk sentiment putting pressure on cryptocurrencies. The conflict rages on in the Gaza area causing market turmoil. 

Bitcoin extended losses on Tuesday, dropping below the $27,300 level. If BTC price declines, support can be found near $26,200, while resistance may be encountered near $28,100. 

Ethereum price also continued to decline on Tuesday, dropping below the $1,560 level. If Ethereum's price declines, it may encounter support near $1,530, while if it increases, resistance may be encountered near $1,660.

Low-risk sentiment in the past couple of weeks has been putting pressure on crypto markets. Global economic concerns are driving risk sentiment down, as prolonged economic tightening restricts economic growth. 

Increases in central banks’ interest rates sour risk sentiment, driving risk assets down. 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 improved on Tuesday, as dovish Fed Rhetoric 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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