Cryptocurrency markets woke up Thursday morning with declines. Bitcoin, which rose above $67,000 yesterday, dropped to $63,800 in the night hours connecting Wednesday to Thursday. Although there does not seem to be a clear reason behind the declines, it is seen that the depreciation is experienced not only in crypto markets but also in traditional markets.

S&P 500, since 2007 for the first time…

The S&P 500 index, one of the main pillars of the US and world market, closed yesterday with a 2.3% loss. For the first time since 2007, the index closed a day with a drop of more than 2%. The total value loss in the S&P 500 was %1.1 trillion in just one day. The one-day loss in the 7 companies with the largest market capitalisation, known as the “Magnificent 7”, exceeded $600 billion.

The Volatility Index (VIX) experienced its biggest rise since April this year and increased by 23%.

Nasdaq also experienced its sharpest decline since December 2022.

Gold and silver also fell, the dollar index is rising

While the declines in the US markets had a harsh impact on the crypto markets, the depreciation in altcoins along with Bitcoin reached significant levels. Ether fell below $3200 and XRP below $0.60.

While the dollar index rose above the 104 level, ounce gold and ounce silver fell by 1% and 4%, respectively.

Fed interest rate cuts expected

On the other hand, the reason for the declines is that the US keeps interest rates persistently high. An interest rate cut is not expected at the FOMC (FED) meeting next week. The lack of a meeting in August also directs all arrows to September.

In particular, the personal consumption expenditure index (PCE) figures to be announced tomorrow, which the Fed sees as alterantive inflation, are of great importance in terms of how the course will be.

At the time of writing, Bitcoin is trading around $64,300.