Jerome Powell's Speech Triggered Bitcoin's 6% Drop

by in Cryptocurrency News

Powell

Last Friday, Fed Chairman Jerome Powell announced the readiness of the American regulator to raise the discount rate if he fails to stabilize inflation at 2%.

Over the past few days, the price of bitcoin has decreased by 6%, on Wednesday the coin is trading at around $20,274. The measures of the US authorities are cooling business activity, so the volume of investment in risky assets, including cryptocurrencies, continues to decline.

Nevertheless, support in the $20,000 region is working so far. Bitcoin plunged below this value several times but quickly rebounded.

The Nasdaq stock index, with which BTC correlates, also lost about 6% after the speech of the head of the Fed.

Trending: Ethereum Active Addresses Dropped to a 4-Month Low

According to Santiment, while bitcoin is losing value, the largest addresses are buying it up at comfortable prices. The researchers' report says that the number of addresses controlling between 100 and 10,000 BTC has reached 15,847 (+103 wallets in the last month).

Ethereum (ETH) strengthened to $1583. According to John Todaro of the Independent Reserve, a few days before the Merge fork, the value of ETH will begin to rise, but it is unlikely that the coin will again exceed $2,000.

Altcoins Cardano (ADA), Solana (SOL) and Dogecoin (DOGE) added 0.2% in value and reached $0.4556, $32.34 and $0.062 respectively.