LAST MINUTE: The decline in the cryptocurrency market, especially Bitcoin, continues without slowing down. Bitcoin tested the $ 21,000 fund with a drop of more than 10 percent.
Bitcoin and cryptocurrencies continue to decline. After inflation in the US hit a 41-year high, the downward movement of the securities and precious metals markets deeply shaken the cryptocurrency market, while Bitcoin (BTC) tested below $ 21,000. While Bitcoin’s value fell more than 10 percent with the sell-off, this was also reflected in currencies like the larger altcoin Ethereum (ETH) and Avax. Ethereum saw the $ 1090 level.
TRUST IN THE MARKET IS SCOT
Edward Moya, senior market analyst at Oanda Americas, pointed out that confidence in the market has deteriorated as the total size of the cryptocurrency market has fallen below $ 1 trillion. Moya said that if Bitcoin drops below 20,000, this confidence will be shaken even more.
“IT IS NOT POSSIBLE UNTIL 2024”
Famous cryptocurrency trader Peter Brandt recently shared a post on Twitter. The tweet included Brandt’s predictions on BTC’s price. As a result, the famous trader has suggested that Bitcoin will not reach a new all-time high until early 2024. According to a well-known chart, it is possible that Bitcoin will enter a “big uptrend” by then.
The cryptocurrency market, rocked by the collapse of stablecoins in recent weeks, has suffered an erosion of confidence in recent days, with the Celcius crypto lending platform suspended transactions. On Monday, the suspension of Bitcoin withdrawals, albeit temporarily, on Binance, one of the largest exchanges in the world, drew attention.
USA ENTERS THE BEAR MARKET
Recently, the correlation between crypto assets and risky assets has increased significantly. The decline in equity markets, especially in the US, was effective on price movements. The New York stock market ended the first trading day of the week with a steep decline due to growing recession fears ahead of the US Federal Reserve’s (Fed) monetary policy decisions to be announced this week. Eventually, the Dow Jones Index lost more than 800 points and dropped 2.79% to 30,516.74 points.
The S&P 500 Index fell 3.88% to 3,749 points, its lowest level since March 2021, and entered a “bear market” as the index fell more than 20% from its January record.
The Nasdaq index also fell 4.68% to 10,809 points.
The indices followed a negative trend on the first trading day of the new week, as high inflation in the US reinforced the view that the Fed could raise interest rates more sharply than its directives and that aggressive increases in interest rates. interest rates could drag the economy into recession.
According to data released last week in the United States, the consumer price index (CPI) rose 1% per month in May, an annual increase of 8.6%, the highest increase recorded since. December 1981.
THE EYES WILL BE ON THE FAITH
All eyes will be on the Fed’s interest rate decision this week. While the Fed primarily expects a 50 basis point rate hike, some institutions like Barclays also expect a 75 basis point hike. Of course, in addition to the interest rate decision, Fed Chairman Jerome Powell’s statements will be followed closely. Powell’s assessments will look for clues on steps to take in the coming months.