The inflation problem in global economies continues. Inflation rates, which have not been seen for decades, especially in the USA and the EU, caused central banks to increase interest rates.
USA the central bank Fed and the ECB, the European Central Bank, increased interest rates. While the central banks, which made interest rate hikes not seen in 20 years, were trying to rein in inflation, it was understood that the problems could not be overcome by only increasing interest rates.
While the losses in employment, the slowdown in the economy due to increasing interest rates, and the risks of recession continued, cryptocurrencies were also severely injured.
After Fed Chairman Jerome Powell’s statement in Jackson Hole, there was fluctuation in the markets. Dollar While there was a rise on the side, a collapse began in cryptocurrencies.
NEGATIVE FOR CRYPTO COINS
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Central banks to raise interest rates cryptocurrency negatively impacted the markets. Cryptocurrencies fell, as investments were expected to turn to deposits due to the increase in interest rates.
THERE HAVE BEEN BEAR-BULL TRAPS FOR A LONG TIME
Cryptocurrency markets have not stabilized since November 2021. Cryptocurrencies started to decline after seeing their historic highs in November 2021. bitcoin from 69 thousand dollars Ethereum It also went into free fall at $4868. Although there were some bullish attempts with the traps of the bulls, the bears were victorious and the decline started to become permanent.
INVESTORS WAITING
While investors in need of money went to the selling side, the people who believed that there would be an increase in protecting their portfolio and waiting were also put on hold. However, due to small upward movements, investors continue to invest believing that there will be a continuation, and large losses can be seen.
BITCOIN CRACKED
Bitcoin, which hovered around $24,000 last week, accelerated the decline with Fed Chairman Jerome Powell’s statements in Jackson Hole. Bitcoin, which fell to the level of 19 thousand dollars in a short time, lost about 17 percent compared to last week. Bitcoin has lost nearly 72 percent from its historical peak of $69,000.
ETHEREUM IS IN FALL
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Following the decline in the leading cryptocurrency Bitcoin, Ethereum also started to lose value. Ethereum dropped from $1700 to $1422. Ethereum is down 76.5% from its historic high.
ATTENTION IS NEEDED
It is useful to be careful when trading in the crypto money markets. Investors lost a lot of money due to the target prices put forward by the experts of social media and cryptocurrency exchanges. Since there is no margin gap in cryptocurrencies, the money can be folded at once, while it can be completely lost at a time. It is a great benefit to trade by placing stop orders while investing. Thus, the losses are minimized and the loss of the portfolio is prevented.
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Since the crypto money markets are still new, it is not yet known how to react to the developments in the world. After the Russia-Ukraine war, crypto money markets took a different direction, and they followed a different path in the face of extraordinary interest rate hikes by central banks. Therefore, it is necessary to pay attention to cryptocurrencies, which are not yet known how to react to events.
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