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Bitcoin Collapses Below $100K Following Powell’s Statements
In a shocking turn of events, the cryptocurrency market has taken a drastic hit after Federal Reserve Chair Jerome Powell’s press conference. The price of bitcoin plummeted below the highly anticipated $100,000 mark, as the market responded negatively to the Fed chair’s statements.
As a result, the digital asset is currently trading at $101,252, having lost significant value in a short period of time. This drastic move comes as the crypto market experienced over $802 million worth of liquidations in the past 24 hours alone.
The sudden downturn can be attributed to Powell’s comments during his press conference, where he discussed the Fed’s new inflation projections and interest rate cuts. The chair stated that the agency now projects a higher inflation rate of 2.5% by 2025, accompanied by only two interest rate cuts. This announcement sent shockwaves through the financial community, as investors reevaluate their positions in the crypto market.
The correlation between the Dow Jones Industrial Average (DJIA) and the cryptocurrency market is evident, as both indices experienced a significant decline simultaneously. The DJIA recorded its longest losing streak since 1974, which further exacerbated the bearish sentiment across the markets.
It’s worth noting that this collapse has been preceded by a series of negative news for the crypto space. Regulatory bodies have stepped up their efforts to scrutinize digital assets, leading many investors to reassess their holdings and seek safer alternatives.
In his statement, Powell emphasized the need for a more aggressive approach in tackling inflation. This stance reinforces the notion that central banks are becoming increasingly skeptical of cryptocurrencies as an effective means of reducing inflationary pressures.
Despite these developments, it remains to be seen whether this downturn will prove to be a temporary correction or a long-term trend reversal. For now, investors remain cautious and are closely monitoring market trends for signs of recovery.
About the author: Alex Dovbnya is a cryptocurrency expert, trader and journalist with extensive experience in covering all aspects of the burgeoning industry – from price analysis to Blockchain disruption.
Source: u.today
