The first cryptocurrency fell 4.3% to around $20,549, its lowest point since July 16, after the US central bank governor said the Fed would continue its restrictive monetary route. At the time of writing, BTC is changing hands at $20,235.
Bitcoin Price Drops To Its Lowest In A Month After Powell Confirms Falcon Monetary Policy
Bitcoin slumped to its lowest price in more than a month after US Federal Reserve Chairman Jerome Powell doubled down on restrictive monetary policy at the central bank’s Economics Symposium earlier on Friday. The biggest cryptocurrency by market cap has dropped to $20,549 but is currently trading around $20,666, down 4.3% in the last 24 hours, with BTC occupied 21,000 as investors await Powell’s much-anticipated speech in Jackson Hole, Wyoming.
“Traders are now revealing markets after Jerome Powell’s hawkish statements on the US economy. “As these bets against crypto prices emerge, the probability of a weekend recovery increases,” Santiment said.
Citing the Fed’s rate-setting committee, Powell said the Federal Open Market Committee’s decision to raise rates by 50 or 75 basis points at its next meeting in September “will depend on the total of incoming data and the evolving outlook.”
Oanda’s senior market analyst, Edward Moya, wrote in an email that investors should predict whether risk aversion will push the bitcoin price down to the $20,000 level. Risk assets are struggling as Powell’s fight against inflation will continue to be aggressive even as it triggers an economic slowdown.
Most altcoins also fell after Powell’s speech, and FLOW’s biggest loser has dropped 11% in the last 24 hours. Ether ,the second-biggest cryptocurrency by market capitalization after Bitcoin, fell 8.5%. Dogecoin (DOGE), Shiba Inu (SHIB), Cardano (ADA) and Shiba Inu (SHIB) have been hit hard.[9:47 am, 27/08/2022] Gauri: Some market watchers seem to be increasingly disappointed with Bitcoin’s persistent correlation with US equities.
“It’s going step-by-step with crypto stocks. Aren’t you tired of this…yet?” Veteran trader John Bollinger tweeted. Bitcoin has dropped more than 70% from its record high and most altcoins have performed even worse than that. After struggling to hedge against inflation, Bitcoin bulls have so far found no other bullish narrative.
The overall cryptocurrency market cap is $972 trillion, and Bitcoin’s dominance rate is 39.8%.