After Federal Reserve Chair Jerome Powell said that the United States Central Bank might very possibly continue to raise interest rates, the price of Bitcoin took a knock this morning, plummeting to within a few hundred dollars of $20,000.
According to statistics provided by CoinGecko, Bitcoin (BTC), the largest cryptocurrency in terms of market value was trading for around $20,600 at the time this article was written. This represents a 24-hour decline of 3.7%.
This year, Bitcoin has taken a significant beating as a result of a significant market sell-off. This asset is now trading at a price that is 70% lower than its all-time high of $69,044.77, which it reached in November 2021.
Following Powell’s remarks, the remainder of the cryptocurrency market was also trading in the negative. Ethereum, the second most valuable digital currency, is now trading at roughly $1,600, a 6% decrease from the previous day’s trading price.
According to statistics provided by CoinGecko, the total cryptocurrency market value was sitting at $1.05 trillion after a drop of 3.8% over the last 24 hours.
At the Federal Reserve’s annual economic conference in Jackson Hole, Chairman Jerome Powell said, “These are the terrible consequences of decreasing inflation.” He went on to say that failure to restore price stability would result in “more suffering” for people in the United States.
This year, the Federal Reserve has been increasing interest rates in an effort to curb inflation, which is presently at its highest level in the United States in the last four decades.
This has resulted in a strong dollar, while other markets, like as U.S. shares, have suffered losses as investors flee risk assets in the face of economic unpredictability.
As a direct result of Powell’s remarks earlier today, the Dow Jones sank by 1.6%, the S&P 500 fell by 1.9%, and the Nasdaq 100 plunged by 2.5%.
Since investors who own digital assets have more recently starting trading them like tech stocks, the cryptocurrency market as a whole, including Bitcoin, has been closely following the stock market.