It’s the lowest Bitcoin has been in the month of August, and for the first time since July 14, the coin has entered the below $20K region.
The world’s largest cryptocurrency has lost almost 8% in the past 40 hours after Federal Reserve Chair Jerome Powell’s comments at the Jackson Hole, Wyoming economic conference on Friday morning.
The Fed maintained its stance to continue raising interest rates in order to control raging inflation.
“Reducing inflation is likely to require a sustained period of below-trend growth … While higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” Powell had said.
Along with crypto, equity markets also slid, with the S&P 500 losing about 2%.
According to industry observers, the market hadn’t completely priced in an incoming rate hike. After last month’s inflation data showed some signs of slow down, the Fed was expected to drop its hawkish position.
Bitcoin is now down almost 60% from the year-high $48,230 seen on March 28.
Ethereum, the world’s second-largest cryptocurrency, fell below the $1,500 region. It came out even worse, down almost 13% in the past few hours, and currently trading at around $1,500.
ETH has lost nearly 70% of its value from the all-time high of $4,900, hit in November 2021, according to Coingecko data.
Over $100 million has been liquidated from the crypto market in the past 24 hours, with $50M coming only from Ethereum, followed by Bitcoin at 28$M, according to Coingalss data.
Other cryptos, including AVAX, SOL, and BNB, have witnessed a similar fate in the past 48 hours.