Bitcoin continues to decline! Here are the expert comments…

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Cryptocurrency The dark clouds in the markets are not dissipating. Cryptocurrencies, which have experienced a great collapse from historical peaks and have not come out of the pit they have fallen into for a long time, continue to decline.

While the confidence in the crypto money markets has been completely shaken, the latest drop has led investors to despair.

The turmoil in the global economy, the Russia-Ukraine war, the energy problem, the appreciation of the dollar, Fed Many factors such as interest rate hikes by the ECB and rising expectations for gold prices cause cryptocurrencies to suffer.

THERE IS AN EARTHQUAKE IN THE GLOBAL ECONOMY

The deterioration in the global economy began to increase. While giant economies are going into recession, central banks trying to cope with inflation are also increasing interest rates. While the highest inflation rates in 40 years were observed, central banks took radical decisions and started to use policy tools that they had not done for decades.

While central banks aim to reduce demand and increase savings by raising interest rates, the dollar and euro continue to stay alive against other currencies.
The increase in gold prices in general during periods of economic deterioration also reveals the possibility of a strengthening in gold in the future.

THE RUSSIA-UKRAINE WAR IS EFFECTIVE

Russia, which was tried to be left alone with the Russia-Ukraine war, is looking for ways to win the war and the economy by making strategic moves. While countries that do not receive energy from Russia enter the winter months without supply, they encourage the production of new resources and the public to save energy. However, this situation may lead to an increase in unemployment while decreasing the industrial production in the economy of developed countries. In this case, if there is a shortage of energy during the winter months, the EU and the US economy may be deeply hurt and may prefer to use different instruments.

CRYPTO MINING GET HARD

Due to the increase in energy prices, which is one of the most important expense items in crypto currency mining, mining activities continue to be carried out with difficulty. The narrowing of the gap between cost and profit makes cryptocurrency mining unfeasible.

BULL TRAPS CONTINUE IN CRYPTO COINS

crypto coins bull continues to beat the traps. Bulls have been manipulating the market for a long time, who want to buy crypto assets cheap by creating a slight rise and then selling hard.

In addition, the turbulences and negative expectations in the global economy also cause a shift to more liquid assets. Since there is no margin gap in cryptocurrencies, the money can be folded and reset in an instant. Those who do not want to take this risk prefer to switch to liquid investment instruments.

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CRYPTO LOAN COMPANY BANKRUPTCY

Celsius, which operates as a crypto loan company and has filed for bankruptcy, bitcoinThe possibility of selling ‘s also triggered the decline. Prices slumped due to the expectation of oversupply if Celsius sells their Bitcoins.

CZ BECOME A DROPPING VEHICLE TOO

Binance’s CEO, CZ, tweeted after the drops in Bitcoin. According to the tweet, he stated that whales and institutional investors are operating to buy Bitcoin cheaply.

MT. THERE’S ALSO GOX FRESH

Cryptocurrency exchange Mt. Results began to emerge in a series of lawsuits involving Gox. Although similar decisions have been made in previous years, Mt. Gox did not pay his investors for these decisions.

One of the biggest thefts in the history of cryptocurrency markets, Mt. Gox had been hacked and billions of dollars of Bitcoin had evaporated.
Mt. Gox has 140 thousand Bitcoins and 500 thousand dollars to be given to the victims. With the return of the Bitcoins, which were purchased at a cost of $200 in 2014, to the investors, the expectation that many investors would turn Bitcoins into cash increased.

BITCOIN DECLINES HARD

Bitcoin, which took action with the hope of testing $25,000, started to decline with the volatility in the global markets. Bitcoin, the leading cryptocurrency traded 69 percent behind its historical peak, is trading at $ 21,440 with a premium of around 1.5 percent today.

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The decline continues in Bitcoin Here are the expert comments...

ETHEREUM ALSO WATCHING LIFE

Ethereum, the second most preferred cryptocurrency, is also in power loss. Ethereum finds buyers at the level of $ 1600 with a small premium of 1.24%.

The decline continues in Bitcoin Here are the expert comments...

Eurasia Blockchain and Digital Currency Research Association President Kadir Kurtuluş and Cryptomeda Founder Eray Dengiz answered the questions of hurriyet.com.tr.

Cryptocurrencies have not been in such an economic crisis after gaining popularity; had not seen war. What does this mean for the future of cryptocurrencies?

Kadir Salvation: Physical warfare is a situation that upsets all economies and brings the sensitivity to risk to the highest level. Cryptocurrencies hit the walls of pandemics, wars, and economic crises in their infancy. We can say that the crypto market, which has grown unhealthy with investments rather than technology, could not stand on its own in its current state. Many situations, such as the institutional investor’s place in the market, the market’s unpreparedness for extraordinary situations, have brought the crypto market under the guidance of the US Federal Reserve (Fed). market made it. We can say that the future of current cryptocurrencies is in the hands of the current system, namely the Fed. In this period, when the economic setup is completely changing, the same may be the case for cryptos, and other than the cryptos we see, central or different cryptocurrencies may appear.

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Eray Dengiz: The fact that crypto money and blockchain trends are still developing makes every development on a global scale a new experience for the cryptocurrency ecosystem. Economic changes, political events and global decisions bring new experiences to cryptocurrency investors at every step. For example; With the experience during the pandemic process, it has made a gain in how a global epidemic that may occur in the future will affect the market. Spending time at home during the pandemic period has brought millions of new users to the cryptocurrency markets. Managing a global crisis with decentralized individual investments has brought a new awareness all over the world.

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Just like the pandemic, wars and regional tensions are an example of this. How will the market be affected in the event of a hot war? In what direction does the market move in regional movements? The answers to questions like these offer forward-looking perspectives for crypto investors. Situations like these can happen at an unexpected time, of an unexpected magnitude. I think that global events will add experience to the future of crypto money and gain new muscles at the point of investment. This is important for the development of the market. Rapid declines in the face of an event that has never been experienced may not have the same effect in the next situation.

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Based on all these views; With each new global event, cryptocurrencies are one step closer to mainstream financial investment instruments and close the gap. As we face the same crises and experience the same conflicts, we see that the crypto money ecosystem learns the needs of the society better and gains new forms accordingly. When we look at the results, it is possible to say that cryptocurrencies penetrate into life a little more in every new global event.

How do the rise in the dollar and the Fed’s interest rate decisions affect cryptocurrencies?

Kadir Salvation: Countries are struggling with inflation and interest rates are being increased. In such cases, resources for production and employment will be needed. Institutional investors will first dispose of cryptocurrencies as risk assets. Due to the money printed due to the pandemic and high inflation, interest rate hikes will continue on the Fed’s side. War situations prevent the country’s economies from recovering rapidly after the pandemic. This means that interest rate increases will continue and the cryptocurrency market will continue to be negatively affected.

Cryptocurrencies are designed to be decentralized and autonomous at their core. The main element that will ensure this is that people can use crypto money in their transactions rather than investing. Due to its high volatility and not being fully accepted by the countries in the legal sense, cryptocurrencies cannot fulfill their main purpose. We can say that it has surrendered to the current system, namely the Fed, due to such individual and institutional investments. As a result; “I think the hard times for existing cryptocurrencies will continue until the Fed starts cutting interest rates.”

Eray Dengiz: Cryptocurrencies are one of the newest and fastest growing markets. Although cryptocurrencies themselves are decentralized, markets As it walks with investors, it is significantly influenced by centralized structures. The Fed’s interest rate decisions can cause crypto money investors to turn to different investment areas. Although this situation causes a contraction in the market, it does not greatly affect crypto-focused investors.

Undoubtedly, crypto money markets can be affected by traditional markets due to the fact that there is a new financial order and that the regulations are not fully revealed. I believe that these effects will decrease over time as the crypto money ecosystem creates its own investor profile, especially the Z generation.

Cryptocurrency mining is having a hard time with the energy crisis. Are rising costs ending mining?

Kadir Salvation: Cryptocurrency production is a business that requires high energy consumption. The increase in the value of crypto money as a result of the systematic decrease in the amount of reward crypto is the basic fiction that makes the system sustainable. However, since the developments are in the direction of the decrease in the value of crypto money and the increase in energy costs, we can say that the miners are waiting for difficult days. The fact that miners start selling rather than decreasing their profitability may take the market to worse places. All these developments can bring about a change in the blockchain technologies behind crypto money. Blockchain infrastructures that provide less energy consumption at the point of verification and proof of existence and cryptocurrencies to be produced on it can come to the fore.

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