NEWSROOM

With the end of May and the arrival of the summer season, the data on how the past month passed in cryptocurrencies began to become clear. Bitcoin's 7.6% decline in May led to comments that the recovery in crypto is losing pace and the first signs of a summer recession are coming.

TURKEY — Cryptocurrency markets have left another month behind. With the start of a new season and the end of May, the data on how the past month passed in the crypto money markets and the expectations for the coming months began to become clear. In the news of Bloomberg, it was stated that Bitcoin, the largest cryptocurrency in terms of market capitalization, lost 7.6% in May, and the loss was the first monthly decline seen by Bitcoin in 2023. It was stated that the investor enthusiasm for Bitcoin, which jumped 84% from the beginning of the year to the middle of April and saw the levels of 31 thousand dollars, was limited due to the decreasing liquidity and shrinking monetary policy.

Gate TR Research Manager Sevcan Dedeoğlu, who shared her evaluations on the subject, said, “Many factors need to be considered together when evaluating the cryptocurrency markets. In addition to economic developments such as the attitude of the US central bank Fed, the debt ceiling crisis that has been resolved, it is possible to observe the seasonal effects such as seasonal changes in the historical data of Bitcoin and other cryptocurrencies.

Summer has cooled the cryptocurrency markets

Pointing out that the summer months indicate a great deal of complacency in the market, business world and international politics, Gate TR Research Manager Sevcan Dedeoğlu said, “Historical data point to periodic rises, trends and patterns in crypto money markets, as in every market. In the historical data of Bitcoin, it can be determined that the cryptocurrency is weak especially in July and August. On the other hand, analyzes reveal that Bitcoin shows high volatility, especially in the summer months. In addition, the Fed's interest rate decision is expected in June. Signals that the US central bank Fed will continue to increase interest rates have strengthened. In the statement made by Cleveland Fed President Loretta Mester, the signs that the contraction will continue supported the decline of Bitcoin to 27 thousand dollars. ” used expressions.

Monthly cryptocurrency exchange volumes at 32-month low

In data released by Block, the cryptocurrency monthly exchange index, which calculates spot market cap on all cryptocurrency exchanges, has lost 27% from its $604 billion valuation in April. This was recorded as the lowest level in 32 months since October 2020. Gate TR Research Manager Sevcan Dedeoğlu stated that investors tend to hold their assets and investments, especially in the months with the Fed meeting, and said, “Investors are watching the market, listening to the developments and holding back from trading while doing this. This more cautious stance is reflected in the trading volumes seen in the exchanges. The excitement generated by cryptocurrency trends like BRC or artificial intelligence-focused projects also fades over time. The recovery in the tech sector is prompting crypto investors to reweight their portfolios.” 

“Markets are always open to new opportunities”

Underlining that the crypto ecosystem should focus on real benefits and the community in order to enable a stable course in the crypto money markets and to create a buying wave for all cryptocurrencies, especially Bitcoin, Sevcan Dedeoğlu said, “As Gate.io, we follow trends closely so that our users can access the right information. we do. We list more than 1,700 cryptocurrencies on our platform, where they can access Web3 with one click, and we ensure that more than 13 million registered investors can catch up with the dynamics of the market. At Gate.io, we know that the markets are always open to new opportunities and follow the developments closely and act accordingly. As Gate.io, which is an intermediary with a transaction volume exceeding $ 4.40 billion every day, we have added new investment tools and listed cryptocurrencies for our users since the beginning of this year, when we celebrated our 10th anniversary with luxury sports cars and different gifts. As one of the world's leading exchanges, we will continue to take responsibility for investors to stay in the ecosystem and trust the cryptocurrency markets, and to develop products that reflect the real benefit of the ecosystem.”