The effect of the elections on the markets was also felt in the cryptocurrency ecosystem. While experts predict that the recent recovery in Borsa Istanbul and the developments in foreign exchange may lead crypto investors to the stock market, it was noted that cryptocurrencies will maintain their priority in the second half of the year.
Cryptocurrency markets continued to be affected by global developments and local agendas all over the world in May as well. While the presidential elections, the stock market and foreign exchange activity seen as a result of the elections, and the new cabinet discussions led the local developments, Hong Kong's new decision on cryptocurrencies and the debt ceiling crisis in the USA left their mark on the markets. Gate TR Research Manager Sevcan Dedeoğlu, a crypto money platform that operates with the motto of the door to crypto and where more than 1.400 cryptocurrencies can be bought and sold, evaluated the developments in the crypto money markets in May.
Borsa İstanbul, the competitor of cryptocurrencies
After the 28nd round of the Presidential Elections on May 2, Borsa Istanbul (BIST) started the week with an upward trend. Noting that BIST, which has gained close to 4% since the beginning of the week, is the only competitor against cryptocurrencies, Sevcan Dedeoğlu said, “As the election uncertainty ends, rising stock indices may cause investors to turn to the stock market. We foresee a horizontal recovery trend in the crypto money market until the end of the year. In this case, BIST, which follows an upward trend, may attract the attention of the investor. We know that the general investor mass in the crypto money market follows Borsa Istanbul closely and shows interest in public offerings. During the bear market of cryptocurrencies, the number of investors in Borsa Istanbul exceeded 4 million, breaking a record.
On the other hand, Gate TR Research Manager Sevcan Dedeoğlu stated that the fact that the USD/TRY parity has a higher expectation than its current value due to reasons such as foreign trade deficit and budget deficit, and returns lower than this expectation will not convince the investors. will continue to be his choice. In line with the gradual recovery expected in 2023 and the rising expectations for 2024, Turkey will be one of the countries that activate the crypto money market during the bull market.”
Crypto money move from Hong Kong by Gate.io
Reminding that China banned all crypto transactions and crypto mining in 2021, Sevcan Dedeoğlu said, “Despite this, as of June 1, 2023, crypto money transactions of individual and medium-sized corporate companies will become legal in Hong Kong under Chinese rule. At the same time, a new licensing legislation will be implemented for platforms that offer digital asset trading services. This situation brought with it discussions about whether China will re-enter the crypto money markets. With the inflow of funds from Asian markets, it is possible to expect a positive trend in leading cryptocurrencies such as Bitcoin, Ethereum, Litecoin. Gate.io's Hong Kong branch has also applied for a license and opened cryptocurrencies such as BTC, ETH and LTC.”
Debt ceiling crisis in the US is closely related to cryptocurrencies
Gate TR Research Manager Sevcan Dedeoğlu, who said that an important development affecting the crypto money markets came from the USA, concluded his evaluations with the following statements: “Even though the USA has a debt ceiling crisis every year, the default risk is a little higher this year and the market was priced with this expectation. In a study by Bloomberg, investors noted that if the US economy defaults, they will turn to gold in the first place, US bonds in the second place and Bitcoin in the third place. In this respect, Bitcoin has been counted among the safe havens in the eyes of investors. While June 1 and June 5 stand out as the two critical dates for the resolution of this crisis, the expectations that the agreement will be reached by the weekend have carried Bitcoin above the 2-week high of $ 28 thousand and Ethereum above $ 1.900. The resolution of the crisis will bring about an increase in risk appetite, which will be a positive development for the markets. If no deal is reached, the markets may be waiting for a drastic correction followed by a positive divergence of Bitcoin.”