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Bitcoin and Ethereum have experienced a sharp decline in value following a speech by Federal Reserve Chairman Jerome Powell. In his address, Powell stated that the US economy is growing at a healthy 2.5% pace, with unemployment remaining low. However, he emphasized that inflation forecasts are higher than expected, citing uncertainty as a major concern.
Powell also addressed the topic of Bitcoin reserves, noting that the Federal Reserve is not currently considering the cryptocurrency and is prohibited from owning it. He expressed his reluctance to discuss the issue further, stating that it is more suitable for Congress to consider such matters.
As a result of Powell’s hawkish speech, Bitcoin has fallen below $100,000, experiencing a 5% drop in value within a 24-hour period. This marks a significant downturn, as it previously reached an all-time high of $108,239 on December 17. The current trading price is $100,671.
In addition to Bitcoin’s decline, Ethereum has also felt the impact, plummeting by 4.23% over the same time frame. Its market cap has decreased by 3.87% to $1.99 trillion, while its 24-hour trading volume surged by over 42% to $99.52 billion.
Several other altcoins have been affected as well, with some experiencing losses of over 10%. The total amount of liquidation in the past 24 hours reached a staggering $709 million, and long orders were liquidated for $612 million.
Powell’s comments on labor market conditions also garnered attention. He noted that while the market is cooling, further cooling does not appear necessary to bring inflation under control.
Source: www.cryptonewsz.com
