Current macroeconomic conditions adversely affect all investment assets. Many investment instruments such as stocks, gold, cryptocurrencies, precious metals lose value in this period. The US dollar is gaining value all over the world.
Cryptocurrency In the market, there has been a bear season since November of last year. However, Bloomberg published an interesting data on the past quarter.
According to data from Bloomberg analysts, cryptocurrencies were the best performing investment tool in the June-September period. While gold, bonds and stocks lost value, the MVIS CryptoCompare Digital Assets 100 Index gained 5.4% between June and September.
At the same time, the Bloomberg Spot Dollar index rose 7.2% to reach a record high.
Why Are Investment Products Losing Value?
Current market conditions adversely affect all investment products. Due to rising inflation around the world, most countries, especially the USA, are changing their monetary policy.
FEDleading the transition to tight monetary policy. The US Federal Reserve began raising the policy rate from March 2022. The interest rate, which was 0.25% in January, has risen to 3.25% as of today.
A new bull season is hardly expected for cryptocurrencies, as long as the theme of high interest rates is seen in monetary policies. Analysts are worried that Bitcoin could see below the $10,000 level in a bad scenario.
Leading cryptocurrency $BTCCurrently, it is trying to hold at $19,000 level.
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