Cryptocurrencies, which closed May with decreases, started June with a recovery. Last month, with the declines in cryptocurrencies such as Bitcoin, Ethereum, Tether, which were at the top of CoinMarketCap, the entire market fell to its lowest level in 130 months, losing $10 million in value. Bitcoin's unit price fell below $30, losing half its value compared to its levels in November 2021. In the last days of May, cryptocurrencies, which gained more than 4% in value, showed a recovery trend by reaching a market volume of $ 1,25 trillion. The first evaluations about the causes of losses in cryptocurrencies, which are known to experience decline and peak cycles in certain periods, and the future of the market, have also begun to come.
Turkex's Founder, Enes Türküm Yüksel, who shared his evaluations about the movement in the crypto money market, said, “Due to global inflation, central banks either raise interest rates or are considering this measure. This seems to be the biggest reason for current fluctuations. Still, we can say that the month of June has started with hope. Cryptocurrencies showing signs of recovery include units such as Cardano, Solana, Polkadot, Bitcoin, Avalanche.”
“There are comments that the interest of institutional investors has decreased”
Enes Türküm Yüksel, who noted in the report of the digital asset manager CoinShares, that an exit trend from crypto money funds was observed for 4 consecutive weeks in the April-May period, said, “In the report, historically, although it is seen that extreme price weakness has increased investment activities, a similar trend has not been observed in this fluctuation. is stated. There are comments that the adoption of cryptocurrencies as a more mainstream investment vehicle is taking longer than expected, which has drawn institutional investors into an observer position. However, it should not be forgotten that fluctuations are in the nature of cryptocurrencies. It is known that Bitcoin has fallen to half of its record levels in a short time for the eighth time since 2009. Another big drop occurred in July 2021, when China banned cryptocurrency mining. "The latest indications point to a way out," he said.
“Data shows the end of the downward cycle”
Noting that similar volatility and depreciation are also seen in European, Asian and US stock markets, Türkex's Founder Enes Türküm Yüksel concluded his assessment with the following statements: “May was a busy month not only for cryptocurrencies but also for global markets. Losses were seen in many stock markets such as Nikkei, FTSE 100, Dow Jones, S&P 500 and Nasdaq. In addition, companies such as Meta, Robinhood, Getir and Uber announced that they will reduce their hiring speed and reduce their workforce. Dara Khosrowshahi, CEO of shared vehicle company Uber, interpreted the events as a 'seismic shift'. We can say that the uncertainties triggered by the crises, such as the tension in Ukraine and the easing restrictions in China, have led both institutional and individual investors to austerity policies and more stable investment instruments. Despite all the concerns, we have been seeing data that the bearish cycle in cryptocurrencies has come to an end for a few days.”
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