Strong declines in crypto – do not fill you with optimism. Stock exchanges are also in red.
Bitcoin is one of the most important cryptocurrencies in the world markets. The last week has not been kind to him. It continued the cycle of declines that saw June 18 break below the 2017 peak. Many investors believed that BTC would never again fall below this bottom of decline. Meanwhile, BTC was valued below $ 20,000.
At the same time, along with Bitcoin, they lost and other cryptocurrenciesthe best example of which is – Ethereum with a drop below the $ 1,000 mark.
The reason for this is the risk aversion presented by investors. For months they have been attacked by information about the recession and information from central banks about a tightening of the monetary policy.
Altcoins that have a chance to survive the bear market
We can safely talk today about a bearish in the cryptocurrency markets in the world. Clear declines in the value of the main and minor cryptocurrencies testify to this. Meanwhile, experts indicate what altcoins have a chance to survive the current bear market and beat the bear market. Among them is mentioned Binance Coin (BNB)i.e. a native cryptocurrency Binance exchangespowering the BNB Chain ecosystem. The BNB token is one of the most popular utility tokens.
Polkadot it is traded in tandem with the Binance coin as a bearish altcoin. It is an interesting project, definitely distinguished by its usefulness. Perhaps also Decentraland (MANA) will survive the current turmoil as a virtual reality platform powered by blockchain.
Bitcoin decline – is it a good investment opportunity?
Breaking the psychological boundary of $ 20,000 with Bitcoin raises questions, is this the best opportunity to invest in digital gold? Market participants who have not yet invested in BTC may have a chance to buy this cryptocurrency at a low price. In the past, such low valuations have always resulted in a returning demand to BTC and an increase in the price of this cryptocurrency.
Increase in interest rates in Switzerland
Last week’s surprise on the currency market was the publication of the Swiss central bank’s decision. Contrary to market expectations, he decided to raising interest rates. This happened for the first time since 2007. He argued his step by saying that inflation in the country was rising, which, without a clear reaction from the Swiss National Bank, could soon get out of control. As a result of an increase in interest rates in Switzerland by 50 basis points, the exchange rate of the Swiss franc increased against the zloty, dollar or euro. Swiss franc cost PLN 4.5836, and the CHF / USD exchange rate increased by 1 percent. on Thursday, June 18. CHFEUR was traded at 0.9792.
Increase in the US dollar
On Friday morning, June 19, there were increases US dollar exchange rate in the markets. Thus, the USD rebounded from the weekly low after two days of decline, which was caused by the decision by the US Federal Reserve to further raise the main interest rates. The US dollar index, which tracks the dollar against a basket of other currencies, rose 0.57 percent. to 104.014.