Last week, the downward trend in cryptocurrencies began with inflation in the United States reaching a 41-year high. With inflation still high, the markets were priced that the US Federal Reserve (Fed) could raise interest rates by 75 basis points.
THE CONCERNS OF THE CELSIUS NETWORK SHARE THE MARKET
Bitcoin, which was trading at $ 30,000 on Friday, continued its downtrend over the weekend and retreated to $ 28,000. It suffered a huge loss on Monday, with cryptocurrency lender Celsius Network suspended withdrawals. Bitcoin has lost 15 percent of its value, from $ 26,000 to $ 21,000.
IT’S DOWN BY MORE THAN 22% IN 3 DAYS
Continuing its downtrend the other day, Bitcoin dropped to $ 20,000 846. Bitcoin dropped to $ 20,000 750 today. The major currency suffered a sharp loss in value, falling more than 22% in the last 3 days of negotiation.
ETHEREUM DECLINES TO AROUND A THOUSAND DOLLARS
Ethereum, the second highest volume digital asset after Bitcoin, fell rapidly from $ 1,500 on Monday. Ethereum, which fell to $ 1,075 the other day, is trying to hold above the $ 1,100 level today. Over the past 3 trading days, the loss in value in Ethereum is based on 25%.
$ 200 BILLION WAS CLEARED FROM THE MARKET
The total capital value of cryptocurrencies, which started the week with over $ 1 trillion, dropped to $ 858 billion on the last day. With this development, $ 200 billion was vaporized into the digital asset market in 2 days. The total capital value of cryptocurrencies is now $ 874 billion.
CRYPTO INVESTORS EXPECT CRITICAL DEVELOPMENT
The eyes and ears of cryptocurrency investors will be on the Fed’s interest rate decision, which will be announced today at 9pm. With the Fed’s interest rates hike in March, the direction of cryptocurrencies, which was under pressure, will be determined in today’s interest rate decision.
If the Fed raises interest rates 75 basis points above market expectations, the downward trend in cryptocurrencies could increase. While the demand for bonds and dollars has recently increased as Fed interest rates rise, a heavy trend is observed in cryptocurrency and equity markets sales.
THE FAMOUS ANALYST’S FORECAST WAS
Instead, the forecasts of the famous analyst Peter Schiff were maintained, who made sensational forecasts over the weekend. Saying, “This week could be tough for cryptocurrencies,” Schiff predicted that Bitcoin would drop to $ 20,000 and Ethereum to $ 1,000.
The famous analyst, who said cryptocurrencies will drop below $ 800 billion, warned investors: “Don’t buy, you’ll lose a lot more money.”