After Powell’s speech, Bitcoin dropped below the $21,000 level, and Ether fell by 11%.
The statements of the president of the FED in the US impacted the market. Bitcoin fell to lows in over a month and ETH momentarily lost support at $1,500.
***
- Crypto markets in red after statements by the president of the FED.
- Powell painted a bleak picture for the US economy.
- Interest rate hikes continue, which could bring “some pain.”
- Bitcoin is around USD $20,000 and ETH around $1,500.
The digital asset market woke up this Saturday in bearish territory, losing more than 5% of its global value after the president of the US Federal Reserve (FED), Jerome Powell, spoke on Friday to reiterate the aggressive approach of the central bank to curb inflation.
Bitcoin (BTC) fell to its lowest price in more than a month, reaching lows of USD $20,036 during the early morning (New York time) of August 27. The top cryptocurrency was volatile on Friday ahead of expectations from Powell’s annual economic symposium in Jackson Hole, Wyoming. Moments before the president’s remarks, the currency hit $21,791, but quickly reversed gains just during the remarks.
Powell yesterday reiterated tight monetary policy, stressing that the battle against inflation, which has reached a more than 40-year high, is far from over. During his speech, the president hinted that the Fed will continue to raise interest rates as inflation far exceeds the bank’s long-term target of 2%. The annual inflation rate in the US eased slightly in July to 8.5% after peaking at 9.1% the previous month.
as reported DailyBitcoinPowell indicated that the central bank’s policy to control inflation could bring “some pain to homes and businesses“thus painting a somewhat grim horizon for the US economy.
Market in the red
Major digital currencies reacted adversely to the statements. ethereum (ETH), the second largest cryptocurrency, posted even steeper losses than Bitcoin, slipping 11% in the last 24 hours. The cryptocurrency momentarily missed the key $1,500 mark in the early hours of Saturday morning.
Ether traded as high as $1,720 on Thursday, after confirmation of the official dates for the anticipated network upgrade,”The Merge“. The final transition from ethereum The proof of participation (PoS) is carried out in two phases, the first starting on September 6. The mainnet merger will happen sometime between the 10th and 20th of that month.
Amid a vast sea of red numbers, some altcoins show steep declines. Solarium (SOL) has lost 9.3% of its value in the last 24 hours and is trading at USD $31. avalanche (AVAX) and uniswap (UNI) also recorded notable falls of 10% and 11% respectively. Others less affected are Cardano (ADA) and Polkadot (DOT), with declines of 5% and 7% this day.
Risk appetite is reduced
The cryptocurrency market slipped below $1 trillion and is down 6.9% in terms of global capitalization. However, he is not the only one affected by Powell’s words, as other risk assets are also facing difficulties due to concerns of further economic slowdown and a declared recession.
Depending on the coverage of CointelegraphUS stocks lost about $1.25 trillion in a single session on Friday, following the FED representative’s speech. The S&P 500 closed down 3.4% on the day, hitting its lowest levels since late July, yel composite index nasdaq copied the movement and extended the losses, retreating 4%, according to that medium.
At the time of publication, BTC is trading at $20,198 and ETH around $1,500, according to data from CryptoMarkets. The total global capitalization of cryptocurrencies is USD $973 billion.
Recommended reading
Article by Hannah Estefanía Pérez / DailyBitcoin
Picture of unsplash edited in canvas
WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.
