Both cryptocurrencies and investors have suffered huge losses in 2022. Everyone is wondering if the worst has already happened. Experts who have spoken on this topic have often provided a detailed explanation of current market trends, expectations, and technical levels.
Collapse in the Cryptocurrencies World is Predicted Between 2020-2023
During the 2008 global financial crisis, the creation of Bitcoin brought cryptocurrencies into the mainstream. Since then, cryptocurrency markets have been shaken frequently. The most recent earthquake began with the collapse of FTX, one of the three largest Bitcoin exchanges in the world.
The collapse of a major exchange led to huge losses in cryptocurrencies and shook investor confidence. While investors were expecting a domino effect, bad news came from Genesis, a bitcoin investment firm. Genesis CEO Silbert announced that the company signed an agreement with investment firm Moelis & Company to explore all options, including bankruptcy.
The price of Bitcoin (BTC), the most popular cryptocurrency, fell below the psychological threshold of $20,000 on Nov. 8 and below $16,000 on Nov. 10 as news spread that a major cryptocurrency exchange went bankrupt.
Bitcoin lost 77.50 percent of its value, falling from an all-time high of $69,000 to $15,510. Cryptocurrency markets have lost a total of $250 billion in the last two weeks. According to industry experts, the bitcoin market has not yet reached its bottom.
Ahead Lies The FED’s Interest Rate Decision
On December 13 and 14, the Federal Open Market Committee (FOMC), which sets monetary policy for the U.S. Federal Reserve (Fed), will hold its December meeting. Although market prices point to a 50 basis point rate hike, the Fed is expected to maintain its moderate pace of rate increases. The Fed’s suspension of rate hikes is expected to increase the market’s risk appetite, thus strengthening the cryptocurrency markets.
In the current situation, such moderate increase is expected to continue in the medium and long term. Although there are no clear comments on currencies at the moment, it is still unreasonable to expect a big jump.
You may be interested in: Why Is STX On The Rise? What Makes Stacks Different?
