Everyone asked, “Why are cryptocurrencies falling?” “Why are the prices of cryptocurrencies falling?” “Has it started bear season for cryptocurrencies?” he asks questions. Nor are they unfair.
There is a new earthquake in the crypto money markets. Leading cryptocurrencies, especially Bitcoin and Ethereum, started the day with sharp losses. Huobi Global Research Manager Süllü pointed out that the level of 42 thousand dollars in Bitcoin prices is critical, and evaluated, “Technically, the downward trend that has existed since the peak is at the level of 42 thousand dollars. Therefore, if it can hold on to the points it has come, there may be reactions to the 50 thousand dollar region again.”
Why are bitcoin and altcoins falling?
Crypto investments are worried. It remains to be seen when the markets will return to normal. While the minutes published regarding the last meeting of the US Federal Reserve (Fed), Federal Open Market Committee (FOMC) held on December 14-15, were found quite ‘hawkish’ by the markets; Expectations that the Fed’s first rate hike will be made in March have also strengthened. While Crypto Money Markets reacted harshly to these statements; The total market value of cryptocurrencies has dropped to $2 trillion. Now, eyes will be on Non-Farm Employment and unemployment data coming from the US side on Friday.
Analysts emphasize that the recent fluctuation in crypto money prices is a reflection of the increasing volatility in the financial markets, and the concern that central banks’ tightening their monetary policies in the face of the rise in inflation will reduce liquidity.