Bitcoin drops to lowest level in over a month, crypto market loses $70 billion
As a result of Federal Reserve Chair, Jerome Powell’s comments that the U.S. central bank may continue hiking interest rates, the price of Bitcoin dropped significantly this morning to $20K.
Following Powell’s remarks, the remainder of the crypto market was also down. The price of Ethereum, the second-largest digital asset, is currently about $1,500, down 10% in the last day.
According to CoinGecko data, the total value of the cryptocurrency market was $978 billion, a 4% 24-hour decline. market worth dropped by around $70 billion.
Early Friday at the central bank’s Economic Symposium, the price of the leading cryptocurrency fell to its lowest level in more than a month due to the tightening of monetary policy.
As investors awaited Powell’s eagerly anticipated speech in Jackson Hole, Wyoming, the biggest cryptocurrency by market capitalization fell as low as $20,180, down more than 4% over the previous day.
Macros on other assets
- Risky assets are underperforming as Powell maintains his tough anti-inflation strategy even if it will result in an economic slowdown.
- As a result, the dollar has gotten stronger, while other markets—like the U.S. stock market—have suffered as a result of investors turning away from risky investments in the face of economic uncertainty.
- The Dow Jones plummeted 1.6%, the S&P 500 sank 1.9%, and the Nasdaq 100 fell 2.5% in the wake of the Fed’s primary statement.
- Since investors holding digital assets have started trading them like tech stocks more lately, Bitcoin and the larger crypto market have closely followed the stock market.
- At its upcoming meeting in September, the Federal Open Market Committee will decide whether to raise rates by 50 or 75 basis points. Powell said the decision will “depend on the totality of the incoming data and the evolving outlook.”
