Leading cryptocurrency Bitcoin (BTC) has fallen sharply, with Russia taking action against Ukraine and negative news from the region. After the last price movements it recorded, Bitcoin, which started to be traded at the price levels of $ 35,200, declined to $ 34,500 during the day. The cryptocurrency market has gained strong bearish momentum, with most altcoins declining at high rates.
Interest Rate Forecast from Goldman Sachs
US-based investment bank Goldman Sachs predicted that the developments in the Russia-Ukraine crisis weakened the possibility of a 50 basis point increase in interest rates expected from the FED for March. In a statement made by Goldman Sachs, “geopolitical developments have made it less likely that the US Federal Reserve will increase by 50 basis points in March”.
The Effect of the FED’s Interest Rate Decision on the Cryptocurrency Market
Bitcoin, which fell to the price levels of $ 34,500 with Russia’s action against Ukraine during the day, has already lost value at high rates in recent months with macroeconomic uncertainty. Bitcoin, the leading cryptocurrency, has fallen by nearly 50% since its $69,000 ATH level, which was recorded mainly due to multiple reasons, but largely due to macroeconomic uncertainty and the expected interest rate hike from the FED for March.
This loss of value in Bitcoin also gave a bearish momentum to the crypto money market. Most altcoins in the market have lost a lot of value in recent months. Ethereum (ETH), which has recorded an average decrease of 50% since the ATH levels it recorded in November 2021, started to trade at the price levels of $ 2,380 with its latest depreciation.