In the past week, the cryptocurrency market has been relatively stabled this past week except for Hedera Hashgraph (HBAR), which saw a notable increase of 15%. However, on Friday (18/08), the market experienced a significant drop, with Bitcoin (BTC) falling by over 11%. One of the main factors contributing to this sudden decrease is the rise in global interest rates, particularly in the United States. According to Bloomberg, the 30-year Treasury bond reached 4.42%, its highest level since 2011. Additionally, the 10-year yield is only one basis point away from hitting a 15-year high at 4.32%. This could significantly impact the cryptocurrency market and its investors shortly.
This has generally affected crypto prices and risk assets, as seen in the 6% drop in the Nasdaq in August. Despite holding steady today, the market remains uncertain.
BTC is making a notable move, breaking free from its consolidation phase. After the breakout, prevailing sentiment remains bearish. The critical $25,000 support level holds significance as a major pivot point. A breach of this level could lead to a downward trajectory, with the next focal point being the $21,000 support. Traders are advised to monitor these levels closely as they provide crucial insights into the current market trend.
Corresponding with BTC's movement, Ethereum (ETH) is tracing a similar trajectory marked by a downtrend. Currently ETH is trading around the $1,650 range, mirroring the overarching bearish sentiment that envelopes the market. Despite this bearish sentiment, the price point of $1,650 holds promise as a strategic level for engaging in Dollar-Cost Averaging (DCA) strategies with ETH. Employing DCA allows investors to systematically spread purchases over time, potentially capitalizing on a favorable average entry point.
This material is for general information and is not investment advice, a recommendation, or solicitation to buy and sell any cryptocurrencies, digital assets, securities or derivative instruments, or to make any investments. Mobee is under no obligation to update this report based on information and events that occurred after this report was created and published. Any suggestions or recommendations in this report may not be appropriate for certain users.