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Panic about Fed minutes and SpaceX news were seen early in the crypto money markets, which are very sensitive to global economic developments and business news. Bitcoin, which fell below $ 26 thousand, recorded its lowest level since June.

TURKEY - Cryptocurrency markets completed the past week with a volatile course and notable losses. The reactions to the Fed minutes and SpaceX news in the crypto money markets, which are very sensitive to the global macroeconomic climate and news from the business world, brought great sales. Bitcoin, which is thought to have followed a strong course since the beginning of the year, fell below the level of 26 thousand dollars at the weekend. With this figure, in addition to Bitcoin, which recorded its lowest level since June, pullbacks were also observed in other cryptocurrencies such as Ether and XRP. According to data shared by CoinGlass, $1 billion out of crypto was seen in a 24-hour time frame. Operating with the motto "The door to crypto," Gate.io Turkey's Research Manager Sevcan Dedeoğlu shared her assessments on the subject.

Fed minutes and SpaceX news were effective

Minutes of the US central bank Fed's interest rate decision meeting session released on Wednesday last week were cited as the primary reason for the crypto pullback. In the minutes, which showed that Fed officials expressed their concerns about the pace of inflation, the signals that interest rate hikes would continue unless the conditions changed were immediately responded to in the market. On the other hand, The Wall Street Journal wrote that Elon Musk's space technology company SpaceX, has detected the sale of cryptocurrencies in its financial statements.

Stating that these two news came one after the other, were met with reaction in the crypto money markets, Sevcan Dedeoğlu said, “The market started a rapid sales wave by giving a panic reaction. For example, Ripple's XRP cryptocurrency wiped out 16% of its value in a 24-hour period, while Ether, the world's second-largest cryptocurrency by market cap, suffered a 6.6% loss in 24 hours. “Bitcoin’s pullback to two-month lows also reinforced panic selling in crypto markets, which have been struggling with regulatory pressures for some time and are closely tied to economic developments.”

Eyes turned to September

Stating that season transitions can cause fluctuations not only in crypto but also in many markets, Gate.io Turkey Research Manager Sevcan Dedeoğlu said, “Investors are trying to re-weight their portfolios and make the best decisions as we enter the new season, leaving the summer complacency behind. The new news is very decisive in this regard. At such times, we find it useful to look at historical data. September will be a critical month, with positive developments to be followed in the rest of August, and the developments on the regulation front in September may cause the Bitcoin price to reach 30 thousand dollars again. The back-to-school period is a time when spending and investments are realigned.”

“Trading and trading volumes also offer insight”

Sevcan Dedeoğlu stated that the technical analysis of the Bitcoin price said that Bitcoin has reached an important support point with the recent losses, and concluded his evaluations with the following statements: “It is a fact that the recent sales in Bitcoin indicate a potential oversold situation. But historical data reminds of a correlation between this support point and Bitcoin price. When Bitcoin falls below the mentioned point, it shows an increase of 28% in the following period, and these increases can reach 60% in the next period.

Volume data also offers remarkable insights into understanding what's going on in the markets. For example, the monthly trading volume of Bitcoin on major cryptocurrency exchanges is at its lowest level in the last five years. In other words, investors follow what happens daily and take positions accordingly. Of course, it should be reminded that all these forecasts and analyzes should not be considered investment advice and that risks are always present. As Gate.io Turkey, which offers a platform where more than 1,400 cryptocurrencies can be bought and sold, we focus on providing up-to-date information that our investors can find references by examining the market in depth.”