The cryptocurrency market has been suffering losses over the past few weeks, but the Friday speech by the head of the US Federal Reserve, Jerome Powell, dealt the strongest blow to it.
Related: Jerome Powell's Speech Triggered Bitcoin's 6% Drop
The readiness of the regulator for the next increase in rates provoked a massive exit of capital from the technology sector, including the cryptosphere.
Bitcoin again fell below $20,000 on Thursday, September 1st. In August, the value of the leading digital currency fell by more than 18%, according to CoinGlass data.
September can be a painful month for the coin, as in previous years this month ended with a BTC pullback.
Altcoins also meet September in the red zone. Ether (ETH) and Binance Coin (BNB) lost about half a percent to $1,542 and $275, respectively.
Only XRP and Dogecoin (DOGE) tokens from the top ten cryptocurrencies are now adding minimal value. At the time of publication of this material, these altcoins were trading at $0.326 and $0.06. The capitalization of the crypto market decreased to $977.185 billion.
Despite the ongoing correction of bitcoin, the exchange balance of the cryptocurrency still remains low.
The report from the Santiment team states that BTC volume on trading floors declined in August to its lowest level in four years.
Trending: Smart Contracts Audits Startup Hexens Closed $4.2 M Seed Funding
Investors have been slowly withdrawing bitcoins from exchanges since the beginning of 2020, as a result, the volume of cryptocurrency on the trading floors decreased to 1.74 million BTC - this is the lowest value since November 2018.
In the long term, this factor should have a positive impact on the value of bitcoin, as a decrease in its exchange supply fuels demand the asset and pushes the price up, analysts emphasized.