Crypto market all over again! Big drop in Bitcoin

According to the news of Euronews; According to data from analytics firm Coinmarketcap, the value of the global cryptocurrency market, including Bitcoin, has dropped by nearly 2 percent in just 24 hours, to just under $953 billion.

Bitcoin, the largest cryptocurrency, has come under pressure from macroeconomic concerns and Powell’s “hawk” speech at the Jackson Hole Economic Policy Symposium on Friday last week.

While Bitcoin fell below $ 20 thousand for the first time since July 13, when it fell to $ 18 thousand 905, it was traded at $ 19 thousand 836 at 11.50 TSI.

Bitcoin’s depreciation in the last 7 days has approached 6 percent. Bitcoin’s market cap also fell below $380 billion.

Bitcoin, which was at an all-time high of $ 68,990 in November 2021, has lost approximately 72 percent since that date.

Ethereum, which ranks second in terms of market value, has also lost more than 3 percent in the last 24 hours, falling to the level of $ 1,447.

Inflation-driven interest rates suppress riskier assets

Bitcoin and other crypto assets are currently losing value due to pressure from rising interest rates around the world due to internal risks.

Analysts stated that the “hawk” messages given by central bank officials, especially the US Federal Reserve Chairman Jerome Powell, at the Jackson Hole Economic Policy Symposium, suppressed cryptocurrencies.

Analysts said Powell made it clear on Friday that the Fed would also accept indirect economic damage to reduce inflation, thereby weakening market speculation that the Fed may consider lowering interest rates again next year.

Stressing that the focus of the Federal Open Market Committee (FOMC) is to bring inflation back to the 2 percent target, Powell said, “Restoring price stability will take some time and will require a vigorous use of our tools to better balance demand and supply.” he said.

“While higher interest rates, slower growth and softer labor market conditions will reduce inflation, it will also cause some pain to households and businesses,” Powell said. had commented.

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