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Completing the last year with the news of the liquidity crisis coming from the global economic winds and stock markets, the eyes of the crypto money markets turned to the developments to be experienced in the first quarter of 2023. It was pointed out that the US central bank Fed meeting is to be held on March 21-22 and will be decisive in the market movements.

TURKEY - After 2022, marked by global inflationary pressures, liquidity problems in cryptocurrency exchanges, and changing investor trends, every month has gained critical importance in the crypto money ecosystem. While investors were looking for signs of recovery in the historical depreciation in the markets, the statements of the US central bank Fed changed the balance. Sevcan Dedeoğlu, Research Manager of the global crypto money exchange Gate.io, which has been operating in Turkey since 2022, shared his evaluations for February.

Interest rate cut plans turned enthusiasm into worry

Bitcoin, which showed a remarkable rise with a 40% rally in January, regressed with the developments in February. Sevcan Dedeoğlu said, “The enthusiasm in the first days of the year gave way to anxiety in February.” On the other hand, the signals of the Fed officials that interest rate cuts will continue after inflation exceeds expectations in the USA caused the forecasts made at the end of 2022 to change. It is discussed that the interest rate in the USA may increase from the current levels of 4.50% - 4.75% to 5.50% - 6.0% during the year.

Positive news came from Asia

On the other hand, in February, news from China and Hong Kong was discussed on cryptocurrency exchanges. The Hong Kong Securities and Futures Commission has made a proposal to allow retail investors to trade on licensed cryptocurrency platforms. Pointing out that the regulatory steps coming from Asia, especially Hong Kong, have a positive effect on the crypto money markets. Sevcan Dedeoğlu from Gate.io, which operates with the slogan of the door to crypto, said that based on global developments, the Bitcoin price is above the level of $20,000, which is considered the psychological limit. He added that we see that the expectation of a rise accompanies the watch. Bitcoin's fall below $20,000 may have negative effects on alternative cryptocurrencies (altcoins).

Eyes turned to March 21-22

The US central bank, the Fed, will hold a monetary policy committee meeting on March 21-22 to reduce high inflation and determine the interest rate decision course. It is focused on the possibility that the decision to be made at this meeting and the messages to be put forward by the Fed officials after the meeting will determine the course of the crypto money markets.

Pointing out that investor trends are shaped very dependent on monetary policy decisions and regulatory steps, Gate.io Sevcan Dedeoğlu concluded his evaluations with the following statements: As Gate.io, which facilitates its processes, we closely monitor every economic development. For example, we observe that ChatGPT, the latest product of OpenAI, which has been conducting artificial intelligence research lately, has created an artificial intelligence wave in the crypto money markets. Artificial intelligence-focused crypto money projects outperform well-established cryptocurrencies like Bitcoin. We will continue to share the latest developments in the markets and readings from different perspectives on our social media accounts for Turkish investors.