Bitcoin dropped significantly underneath the $20,000 mark on Sunday evening, after spending most of the weekend stubbornly holding to support above this level.
Of late, the top cryptocurrency by market capitalization was trading at $19,775, a decrease of over 1% from the preceding day. Ether, the number one altcoin by market capitalization, was currently trading at about $1,451, down over 2.8% as investors sought to digest US Federal Reserve Chairman Jerome Powell’s pledge to maintain the hawkish monetary stance the Fed took a few months back.
A portion of investors was looking for evidence of Fed optimism that its actions over the past few months were managing inflationary pressure and that it would abandon its current rate-hiking diet of 75 basis points.
Joe DiPasquale, manager of crypto assets at BitBull Capital, has remarked that “The macroeconomic inconsistencies continued to affect on the value of BTC, and despite the deleterious PCE data (which gave the market optimism that the Fed might adopt a less aggressive posture in the future), [the] Fed chair’s remarks on Friday derailed those aspirations as he warned against hasty policy easing. The market has responded badly to these remarks, and Bitcoin is now challenging the $20,000 support level.”
As we speak, US taxpayer monies are being sent to the Artemis 1 spacecraft, while funds are swiftly evaporating in a cryptocurrency launchpad inferno as the market loses around $100 billion since Friday.
This may be attributed to Ground Control, also known as the interest-rate-hiking, pain-inducing Federal Reserve.
Once more.
Powell stated in his address on Friday that the Fed would continue to raise interest rates until inflationary pressure is brought under control, adding that this will likely cause “some pain” to consumers and companies. ”The Fed’s primary objective right now is to return inflation to our 2% target,” he added.
For risk assets such as cryptocurrency, Fed head Jerome “JPow” Powell’s Jackson Hole address was about as positively welcomed as a Christmas card from the Morrison family’s Hawaiian trip. Moreover, if Bitcoin’s past is any indication, September may provide absolutely no reprieve.
Due to this, some/many crypto analysts are forecasting a rather nasty September. The following graphic from the cryptocurrency futures trading and information website CoinGlass demonstrates why…
