Bitcoin dug in following its Thursday climb back above the psychologically significant $20K level.
After a month to forget in the cryptocurrency markets, the largest cryptocurrency by market value was recently trading at $20.1K, up around a percentage point over the previous day as investors looked ahead anxiously.
The price of the leading cryptocurrency dropped by nearly 20% in August and more than 13% since the middle of the month, when a surge fueled by delusionary expectations of a return to more moderate monetary policy (since dashed by Federal Reserve Chair Jerome Powell in Jackson Hole, Wyoming) caused the price to rise to close to $25K. Because the Fed’s “talking harsh risk-off sentiments in the market has intensified.
Digital assets value over the last week was comparatively inactive, at least in terms of price growth, but this doesn’t imply there wasn’t turmoil. The entire capitalization appears to be narrowly missing the coveted $1 trillion level.
A number of market pundits argue that the market as a whole was extremely indecisive, and Jerome Powell’s speech at Jackson Hole is mostly to blame for this. Since the Fed isn’t expected to raise rates in August, market players were keen to see what the next rate hike in September may entail.
The Fed Chair had no clear answers, stating that their next decision would entirely depend on the facts they would receive. The market experienced severe volatility after he suggested that the restrictive measures could need to last for a time, which resulted in yet another plunge below $20K.
In addition, Ether recently traded at about $1.5K up more than a percentage point from Tuesday. The most popular altcoin has fallen more than 20% since mid-month, when excitement about the Merge, the Ethereum blockchain’s eagerly awaited protocol switch from a proof-of-work to a more energy-efficient proof-of-stake sent, sparked ether price to over $2,000.
The token decreased by 6% overall in August. The Ethereum price didn’t do much worse than the tech-heavy NASDAQ, which fell 4.6% in the same period
