Beste Naz Süllü: I do not expect a prolonged downward trend in crypto

Bitcoin prices, the most popular cryptocurrency with the highest trading volume, are trending negatively this week after rising for 5 consecutive weeks. The escalation of the conflict between Israel and Palestine into a war and the possibility of it spreading to nearby regions have also impacted the pressure on cryptocurrencies, which are considered risky assets.

While the observed downward trend remains limited for Bitcoin, experts emphasize the importance of the 27,000 support level.

Bitcoin, which tested above 28,600 dollars last week, was heading toward a nearly 2-month high.

While news flow regarding geopolitical tensions is expected to influence pricing on one hand, statements from US Federal Reserve (Fed) officials will be monitored on the other. Clues regarding the Fed's monetary policy are among the key factors determining the direction of cryptocurrencies.

FED MEETING MINUTES TO BE MONITORED

The meeting minutes regarding the Fed Federal Open Market Committee (FOMC) meeting held on September 19-20 will be released today at 21:00 Turkish time. The messages regarding the monetary policy the Fed will follow will be important.

In its September meeting, the Fed kept the policy rate unchanged in the 5.25-5.50 percent range, the highest level in 22 years, in line with market expectations, while signaling in its economic projections that there would be one more hike by the end of the year. As the bank signaled that it would keep interest rates high for a long time, expectations for 4 interest rate cuts in 2024 fell to 3. While the Fed is not expected to touch interest rates at its November meeting, it is projected that it could increase the policy rate by 25 basis points at the December meeting.

LATEST STATUS IN BITCOIN AND ETHEREUM

Bitcoin (BTC) saw a high of 27,489 dollars and a low of 26,967 dollars today, and as of 15:18, it is trading at 27,228 dollars, down 0.65 percent. Bitcoin has lost 1.30 percent in value over the last 7 days of trading, and its market value reached 531 billion dollars.

Ethereum (ETH), the second-largest cryptocurrency by trading volume, is moving at 1,575 dollars at the same time, with a gain of approximately 0.99 percent compared to yesterday's close. ETH has declined by 4.51 percent in the last 7 days.

Globally, the market value of cryptocurrencies lost approximately 0.64 percent in value over the last 24 hours, rising to 1.06 trillion dollars.

CRYPTOCURRENCY ANALYST BESTE NAZ SÜLLÜ: "I DO NOT EXPECT A LONG-TERM DECLINE"

A war has officially begun between Hamas and Israel. However, the US sending aircraft carriers to the region and reports in the Israeli press that the attack was Iran-backed indicate that the events will escalate. The war breaking out in a geography close to oil fields pushes prices upward, while the demand for safe havens reduces risk appetite, creating a decline in risky assets such as stocks. The initial reaction of cryptocurrencies in this scenario was downward. I do not expect the trend to be a long-term downward one.

Likewise, although the news of the start of the Ukraine-Russia war caused the initial reaction to be downward, we saw a recovery afterward. The most important reason for this is that the fastest money flow is carried out via blockchain, provides the advantage of digital money transfers, and its price is much less volatile than before due to supply constraints, which supports Bitcoin usage and, consequently, its price. Bitcoin has a major support zone at the 26,500-27,000 level. I underline the possibility of it retreating toward this price level and finding support; however, I emphasize that one should be cautious about new purchases until it shows signs of holding due to the volatile agenda."