Bitcoin drops below $20,000 after Jackson Hole caution
Recently, Bitcoin has fallen below $20,000 as part of a wider cryptocurrency-market retreat, amid concern about the Federal Reserve’s rate-hike path. The largest token was trading at 19,999, after a two-day drop of 7.6%, moving together with US stocks after Fed Chair Jerome Powell’s speech at the Jackson Hole conference.
After Powell’s remarks, Cici Lu, CEO at consulting firm Venn Link Partners, said, “Money is flowing out of risky assets. Crypto followed the sharp adjustment of the US stock market. Markets didn’t like what he had to say and Bitcoin is resuming as a high-beta asset.”
The $20,000 level acted as support for Bitcoin when it hit lows in recent months, but the cryptocurrency had worked its way higher in recent weeks. It hadn’t been below $20,000 since July 14, and had even crossed above $25,000 earlier in August.
Numerous strategists have flagged $20,000 as a key point for Bitcoin, though levels of support could lie lower as well. The past days have been tough in the crypto market, with $288m of crypto longs liquidated on the most recent one. On August 19, $562m of longs were liquidated, the most since June 13.
Second-biggest crypto Ether was holding steady at around $1,500 after dropping 13 percent over the prior two days. It has been fluctuating in recent weeks ahead of its much-anticipated Merge upgrade, which is due in mid-September.
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