Following comments from Federal Reserve Chairman Jerome Powell that the US central bank may continue to raise interest rates, the price of Bitcoin dropped significantly this morning to $20,000.
Following Powell’s remarks, the rest of the crypto market was down as well. The price of Ethereum, the second-largest digital asset, is currently around $1,500, down 10% in the past day.
According to data from CoinGecko, the total value of the cryptocurrency market was $978 billion, down 4% over 24 hours. the market value fell by about $70 billion.
Early Friday during the central bank’s Economic Symposium, the price of the major cryptocurrency fell to its lowest level in more than a month due to monetary policy tightening.
As investors awaited Powell’s highly anticipated speech in Jackson Hole, Wyoming, the largest cryptocurrency by market capitalization fell to $20,180, down more than 4% from the previous day.
The news continues after this announcement
Macros on other assets
- Risky assets are underperforming as Powell is maintaining his tough anti-inflationary strategy even though it will lead to an economic slowdown.
- As a result, the dollar strengthened, while other markets, such as the US stock market, suffered as investors turned away from risky investments in the face of economic uncertainty.
- The Dow Jones fell 1.6%, the S&P 500 fell 1.9% and the Nasdaq 100 fell 2.5% following the Fed’s primary statement.
- Ever since investors holding digital assets started trading them like tech stocks more recently, Bitcoin and the broader crypto market have closely followed the stock market.
- At its next 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 be “depend on the totality of incoming data and the evolution of the outlook.”