Fears of recession in the US have had an earthquake effect on cryptocurrencies as well as in the traditional financial world. Bitcoin, which was at $ 63,000 on Friday, fell to $ 52,000 tonight. The loss of value was 20 per cent in Ether in the last 24 hours. Ether fell as low as $ 2100.

What are the reasons for the decline?

The biggest reason for the decline in cryptocurrencies is shown as the increasing fears that the US is now in recession. The Fed,, which started to increase interest rates in March 2022, had kept the rates constant in the last 12 months. When the Fed, which could not reduce inflation to the target level of 2%, kept interest rates high for a long time, the markets reacted sharply after last week’s decision. Despite the data indicating that the economy was cooling down and the expectation of a rate cut in September reached 100%, investment assets started to lose value as of Thursday.

Buffet’s sales

Warren Buffet, one of the world’s most famous investors, sold a large part of his Apple shares and moved to a position to have the lowest number of Apple shares in his hands since 2017, again increasing fear in the markets.

The declines in Asian markets, which opened on the night connecting Sunday to Monday, also hit cryptocurrencies hard. In Japan, the Nikkei 225 index fell more than 5.5%.

More than 20% drop in Ether

One of the cryptocurrencies that experienced the biggest decline of the night was Ether. In particular, the fact that the cryptocurrency trading firm Jump Trading sold at least $ 200 million of Ether had a negative impact on the ecosystem, especially the DeFi area. Ether fell more than 20% in 24 hours and went down to $ 2100. There were also sharp declines in DeFi based tokens such as LINK, UNI, AAVE, SNX.

In the last 24 hours, $ 880 million crypto positions were liquidated.