After the Fed’s restrictive monetary policy was reiterated by the head of the U.S. Central Bank, the first cryptocurrency fell 4.3% to $20,549.
After U.S. Federal Reserve Chairman Jerome Powell increased the restrictive monetary policy on Friday’s Economic Symposium, Bitcoin ( TC), its price dropped to its lowest level in more than a month.
The market capitalization of the largest cryptocurrency fell to \$20,549, but it is currently trading at \$20,666, down 4.3% in the past 24 hours, and below the \$21,000 perch BTC occupied while investors waited for Powell’s speech in Jackson Hole.
Federal Open Market Committee will decide whether to raise rates by 50 basis points or 75 basis points at its September meeting. This decision will be based on “the totality of the inflow data and the evolving outlook,” Powell stated. He was referring to the Fed rate-setting committee.
Edward Moya, Oanda’s senior market analyst, said in an email that traders must anticipate whether risk aversion might push bitcoin’s price below \$20,000 levels.
Moya stated that Risky assets are in trouble because Powell’s fight against Inflation will continue aggressively, even though it will cause an economic slowdown.
Many altcoins fell after Powell’s speech. FLOW was the worst loser, falling 11% in the last 24 hours. The market capitalization of Ether ( and ETH) was 8.5% lower than that of bitcoin.
As equity investors reacted negatively to Powell’s comments, the S&P 500 dropped 3.25% and the tech-heavy Nasdaq plummeted 3.8%.