Bitcoin Dips Below $20,000 in the Last Week of August

Following Jerome Powell’s caution against premature policy easing, cryptocurrencies followed the trend of stock markets worldwide and fell. Bitcoin fell below the low point of the tight range it has been trading in for the previous two weeks.

Powell’s acknowledgment that suffering will precede relief strikes Josh Olszewicz, head of research at digital asset fund manager Valkyrie Investments, as being “very hawkish.”

As of Saturday at 2:40 p.m. in Singapore, the biggest cryptocurrency by market cap dropped as much as 3.4% to $19,947.32, breaking through $20,000 for the first time since July 14 and extending its decline for the year to 57%. Over the previous week, it has fluctuated between that price and roughly $22,000.

Read More: How to Quit Crypto Safely

Up to 5.5%, less ether was traded at $1,471.41. Avalanche and Solana fared worse, falling as much as 6.4% and 6.9%, respectively.

However, other experts claim that the current trading pattern offers a purchasing opportunity.

The chairman of the Federal Reserve, Jerome Powell, pushed back against the notion that the Fed would soon change direction, indicating that the US central bank is likely to keep hiking interest rates and maintain them high for some time to stifle inflation. Low-interest rates are said to be one of the factors driving investors into cryptocurrencies during the Covid lockdowns.

In recent weeks, Ether had outperformed the overall cryptocurrency market thanks to anticipation around the upcoming “Merge” network software upgrade.

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