Bitcoin Drops Below $20,000. Again.
Aug 29, 2022
Investors are abandoning the cryptocurrency market once more, and this trend is likely to continue for a certain time.
The crypto market is once again in decline. For the sixth session in a row, prices begin to decrease. In terms of market worth, we are once again under a trillion dollars. According to statistics firm CoinGecko, the market was valued at $997 billion at the time of the previous check, down 1.3% in 24 hours.
This market has therefore lost more than $2.1 trillion from its all-time high of more than $3 trillion in November of last year. Bitcoin, which has lost 8% of its value in the previous seven days, represents the current negative trend. The king of cryptocurrencies plummeted below $20,000, a level it has not reached since July 14.
At last check, one Bitcoin was valued at $19,871.15. It has decreased by 71.2% from reaching a record high of $69,044.77 on November 10 during the height of the crypto euphoria.
In recent weeks, the most popular cryptocurrencies have steadied somewhat over $20,000 and even managed to surpass the symbolic milestone of $25,000 on August 15 before dropping again on fears about the Federal Reserve's monetary tightening. The Perpetrators of What Is Happening The arithmetic is simple: cryptocurrencies, which are the public face of the crypto business, are viewed as risky assets by investors in the same way that stock markets and, in particular, technology groups are. When things go wrong, risky assets are generally the first to suffer the price. In this situation, investors are concerned that the central bank's aggressive rate rise would result in a harsh landing for the economy, sometimes known as a recession. As a result, they liquidate or avoid investments deemed risky.
During his remarks Friday at the regular Fed symposium in Jackson Hole, Wyoming, Fed Chair Jerome Powell did not calm them. According to Powell, the economy would likely require higher rates for a longer length of time in order to contain the fastest domestic inflation in forty years.
Powell noted that higher rates will likely result in poorer near-term growth and worse labor market conditions, calling it the "unfortunate price of decreasing inflation."
"We must stick at it until the job is finished," Powell said of the Fed's fight against inflation. "History demonstrates that the employment costs of lowering inflation are likely to rise as time passes." Ether Is in The Crosshairs Powell also stated that another "unusually big" rate rise in September may be appropriate but that no decision has been made and that the extent of the move "will depend on the totality of the incoming data and the changing outlook."
Powell's statement has an impact on alt currency such as Ether, which is on the increase.
In the last 24 hours, Ether, the native token of the prominent Ethereum network, has dropped 3% to $1,452.24. Nonetheless, the Merge, the well-known Ethereum software update that will be implemented in two stages in September, is seen as a game changer for the crypto sector.
The Merge is intended to make blockchain more accessible to a wider range of individuals by cutting transaction fees and attracting environmentally concerned investors due to the introduction of a new, less energy-intensive transaction validation method known as proof-of-state.
Ether has fallen 70.1% since its all-time high of $4,878.26 on November 10.