Sharp decline in cryptocurrencies
Investors continue to flee from risky assets, especially cryptocurrencies, with the rising dollar. With this escape, Bitcoin declined by up to 5 percent the previous day to $ 18,933.
Showing a rapid decline with the effect of the strong dollar, Bitcoin tested below the $ 18 thousand 700 level in the morning. The level Bitcoin has reached has attracted attention as the lowest level since July 13. Experts state that if the selling pressure continues, Bitcoin may fall to the level of $ 17,500. As of Wednesday, the value of the Cryptocurrency market dropped below $1 trillion to $941 billion. While Russia’s statements at the beginning of the week that it would close Nord Stream 1 for an indefinite period of time deepened the current energy crisis, risk appetite was adversely affected by this process. With the recession expectations, the decrease in the risk appetite of the investors became evident.
Investors’ aversion to risky assets has led to sharp drops across the crypto market, apart from Bitcoin. The decline in Ethereum and Dogecoin also surpassed Bitcoin and rose above 8 percent. The drop in Ethereum came ahead of the highly anticipated Merge update. Bellatrix, the integration step of the Merge update, which is important for the Ethereum network, is seen as one of the biggest and most complex updates among cryptocurrencies.
The update is expected to go live on September 15. On the other hand, according to a report published by KPMG in the USA, cryptocurrency investments are expected to decrease further in the coming months. While it is pointed out that investors’ interest in NFTs may continue even though crypto money investments decrease; Blockchain is also expected to come to the fore. While the decline in cryptocurrencies continued, the news from Russia at the beginning of the week was remarkable for the crypto money market. Russian Deputy Finance Minister Aleksey Moiseyev commented that cryptocurrencies “must be used in international trade” and stated that there were differences of opinion with the central bank on regulation. Moiseyev told Russian state channel Rossiya-24, “The infrastructure we have planned may be rigid for cross-border transfers. For this, we need to legalize these transfers first. On the one hand, while we need to give people this opportunity, we must also have control to prevent money laundering and drug payments.”