The Magazine for Asian Investors
Bitcoin has been falling steadily on concerns about the Federal Reserve (Fed) raising interest rates.
The bitcoin price fell 5.51% this morning to $20,325.17.
Bitcoin slid into negative territory this morning after the Dow Jones Industrial Average closed with a steep drop of 1008.38 points on Friday (Aug. 26) following Federal Reserve Chairman Jerome Powell’s reiteration that the U.S. central bank will continue to raise interest rates to curb inflation and that the Fed could raise rates sharply in September.
- Dow Jones Industrial Average fell 1,008.38 points or 3.03% to close at 32,283.40 points.
- The S&P 500 fell 3.37% to close at 4,057.66 points.
- The Nasdaq fell 3.94% to close at 12,141.71 points.
Powell said the Fed’s job of fighting inflation is not over. The Fed will continue to tighten monetary policy. This could have an impact on economic growth and the labor market in the U.S.
“We will continue to raise interest rates until we are confident that our mission will be successful. Households and businesses may be affected by the Fed’s continued rate hike. But failure to stabilize prices will have a bigger impact,” Powell said at the Fed’s annual meeting in Jackson Hole yesterday.
Bitcoin surpassed $69,000 in November 2021, its highest level in history, before collapsing to below $20,000 in June 2022.
Bitcoin is plunging on fears that the Fed’s accelerated rate hikes and balance sheet cuts will strain market liquidity and plunge the U.S. economy into a severe recession.
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Saturday, August 27, 2022