The cryptocurrency market also ended the month with losses. Bitcoin fell 37.29% in June, down sharply. The digital asset general turned upside down due to the effect of Bitcoin’s decline. Investors are asking themselves the answer to the following question; When will bitcoin rise?
THE WORST PERFORMANCE ON BITCOIN SINCE 2011
In the second quarter of 2022, Bitcoin lost 58% of its value. The wind of sales in the cryptocurrency market is also reflected in the altcoins. Ethereum fell 44% in June.
430 BILLION DOLLARS WAS STEAM
The total capital value of cryptocurrencies increased from $ 1.29 trillion to $ 865 billion in June. On a monthly basis, the total capital value of digital assets decreased by 33%, while $ 430 billion evaporated.
INVESTORS ARE AFRAID
After the June crash, cryptocurrency investors were concerned. First, the collapse of the ecosystem’s two digital assets, the Moon and the UST, and then the collapse of cryptocurrency lender Celsius Network on the verge of bankruptcy, led to sharp drops in the market.
Most investors got mad at cryptocurrencies and closed their investments. The decrease in transaction volumes in the cryptocurrency money market has attracted attention in recent days. One of the biggest factors in Bitcoin’s withdrawal stands out as the decrease in transaction volume.
In recent days it has been observed that the consolidation in Bitcoin is progressively decreasing. The calm trend in Bitcoin shows that investors are exiting the market.
IMPORTANT NOTICE TO INVESTORS
Volatility could increase as investors reenter the cryptocurrency market. But right now, most investors are taking a cautious stance. Those who will be trading in the cryptocurrency money market are advised not to react quickly to sudden rises or falls and to remain calm.
BITCOIN BEYOND THE CRITICAL THRESHOLD
Bitcoin, which started the week at $ 19,000, today passed the critical $ 20,000 mark. Currently trading at $ 20,233, Bitcoin is hovering above the 100-hour simple moving average.
WHEN WILL BITCOIN INCREASE?
Beginning in March, with the US Federal Reserve (Fed) starting to raise interest rates, the decline in the cryptocurrency market and stocks gained momentum. During the period of the pandemic, extremely accommodative monetary policy practices led to a sharp increase in risky assets. As shares rose, Bitcoin broke the all-time record with $ 69,000.
The bullish season of the cryptocurrency market has come to an end, with the end of the pandemic and the rise in interest rates by central banks to counter the rise in inflation globally.
Although central banks have raised interest rates, global inflation is still strong. While inflation in the US has broken a record for 41 years, the Fed’s interest rate hikes have not been effective in declining the overall price level.
Analysts say the Fed will continue to raise interest rates, but this will not be effective in reducing inflation. When it is seen that inflation cannot be held back by interest rate hikes, the Fed and other major central banks in countries will put an end to interest rate hikes.
With the end of the hawkish stance on the part of central banks, cryptocurrencies are expected to rise again.