Bitcoin saw its price drop in late August after a slow but steady rally. It looked as if the world’s leading cryptocurrency by market capitalization was on the verge of hitting $25,000, but that clearly wasn’t supposed to be because things eventually took a turn for the worse and the assets plunged into the low-$20K region. once again.
Bitcoin saw more bearish conditions in late August
The digital currency – along with many of its counterparts – Suffered and new arrived Lowest level in three weeks. Interestingly, the declines occurred at the same time that many stocks were also plunged into oblivion. Many analysts feel this is happening for a number of reasons, one of the most important being that traders and investors are staying away from risky assets.
There are also many concerns surrounding the Federal Reserve, as it is not entirely clear what the agency will do in the coming months. There have been conflicting reports on whether the Fed is looking to raise interest rates in the coming weeks.
James Bullard is president of the Federal Reserve Bank of St. Louis and a member of the Federal Open Market Committee. He recently commented that he, himself, would support additional price increases because he was convinced that this would help fight inflation and keep food and gas prices at normal levels. He said:
We must continue to move quickly to the policy rate level which will put significant downward pressure on inflation. I don’t really understand why you would want to drag the rate increases into next year.
Mary Daly – who runs the Federal Reserve in San Francisco, California – said she aligns with Pollard, and is also open to the idea of raising rates by up to 75 basis points.
Brett Sevling – an investment advisor to Gerber Kawasaki Wealth & Investment Management – said that many traders and investors, whether they have their money in stocks, cryptocurrencies or precious metals, are commenting on every action that comes out of the Fed’s mouth, and that whatever the Fed says In the coming weeks it will be considered very important.
With the repeated commitment to lower inflation this week, it is likely that people have taken the opportunity to dump their positions.
Joe DiPasquale, CEO of crypto hedge fund Bit Bull Capital, also threw his two cents into the mix, saying:
Today’s sharp drop is a result of market participants reducing risk after renewed expectations of the Fed’s hawkish treatment.
What will the Fed do?
Finally, Armando Aguilar – an independent crypto analyst – commented:
All eyes will be on the Federal Reserve’s annual symposium in Jackson Hole, Wyoming, next week.
Bitcoin has suffered so badly lately due to these continuous price hikes, that the asset has lost more than 60 percent of its value in just the past few months.
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