Cryptocurrency Market Fluctuates After FED Decision

Cryptocurrency Market Fluctuates After FED Decision

Before the Federal Reserve (FED) rate decision was announced on June 15, the leading cryptocurrency, Bitcoin (BTC), was hovering above $21,000. In the early hours of the same day, it had decreased to $20,400. After President Powell‘s statements, there were serious fluctuations in the market.

Cryptocurrencies, which lived their golden age in 2021, surrendered to sales pressure above expectations in 2022. The market volume decreased from 2 trillion dollars to 970 billion dollars.

While the concerns of recession in risky assets increased, the prevailing sales wave in the market impacted cryptos too. The interest rate decision was announced yesterday evening, which investors have been eagerly waiting for. The US Federal Reserve increased the interest rate by 75 basis points to the range of 1.50-1.75%, in line with the expectations.

Bitcoin (BTC), on the other hand, experienced a sharp rise after Jerome Powell’s statements and reached the $23,000 limit. While the crypto money market is moving, a shaking prediction for Bitcoin (BTC) came from Jeffrey Gundlach, CEO of Doubleline Capital.

Shaking Bitcoin Forecast from Doubleline Capital CEO

Jeffrey Gundlach, CEO of investment management firm DoubleLine Capital, headquartered in Florida, shared a prediction that will anger crypto enthusiasts. Gundlach said he would not be surprised if the Bitcoin (BTC) price drops to 10 thousand dollars.

Gundlach said to US-based news channel CNBC, “Some parts of the cryptocurrency industry have exploded. Bitcoin (BTC) can fall as low as 10 thousand dollars. When the BTC price broke the 30 thousand dollar level, I examined the charts and saw that it could drop to 20 thousand dollars very quickly. Then it did that, and it fell to $20,000,” he said.

Evaluating the decisions the Federal Reserve (FED) made in his statements, the successful manager stated that the FED has become much shorter-term than in the past.

Gundlach said that he expects inflation to approach 7% by the end of 2022. He also underlined that he expects the institution to continue to increase interest rates in the summer period.

Cryptocurrency Market Fluctuates After FED Decision

Criticism of the Federal Reserve (FED)

Jeffrey Gundlach, CEO of DoubleLine Capital, came to the fore with his statements after the Federal Reserve (FED) rate decision. Gundlach suggested that the US economy appears to be weaker than is projected.

Stating that the Federal Reserve (FED) has made short-term movements, the manager said that he expects the US inflation to approach 7 percent towards the end of the year.

After the FED rate decision, the pressure on cryptocurrencies seems to have decreased. Slight uptrends started to occur from the low levels. Although Gundlach predicts that Bitcoin (BTC) will drop to $10,000, BTC is moving above $21,000.

Ethereum Struggles for Not to Drop To $1000

Ethereum (ETH), the most valuable altcoin in terms of market value, has recently started hovering around the $1000 level. Ethereum (ETH), just like other cryptocurrencies, experienced a slight increase after the FED decision. Bitcoin (BTC)’s market share was 44.2%, while Ethereum (ETH)’s market share was 14.9%.

After gaining around 9%, Ethereum (ETH) surpassed the $1,200 level but later dropped back to $1,100.

Avalanche (AVAX), which experienced a sharp decline and upset its investors, also started to show an upward trend. AVAX is trading at $16.39. The token caught the eye with a price of $ 146 in late 2021, but the downward trend prevailing in the market in 2022 pushed AVAX below $20.

Popular meme tokens Dogecoin (DOGE), Shiba Inu (SHIB), Floki Inu (FLOKI), and BabyDoge have joined the rush of altcoins turning green. Especially Floki Inu (FLOKI) and Dogecoin (DOGE) made investors smile with their rises above 5%.

Axie Infinity (AXS), which is the first name that comes to mind when NFT games are mentioned, has again exceeded the level of 14 dollars. The token continues the day with an increase of 6.74%.

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