The Magazine for Asian Investors
Bitcoin prices have fallen below $20,000 this morning after Federal Reserve Chairman Jerome Powell signaled that the Fed will continue to raise interest rates to curb inflation. Bitcoin fell 345 points or -1.33% this morning to $19,706.61
Bitcoin prices fell below $20,000 for the first time since July 14 after Powell spoke at the Fed’s annual meeting in Jackson Hole on Friday ( August 26).
He said the Fed will have to tighten policy for a while before inflation can be controlled. This could lead to slower economic growth and a weaker labor market, affecting the household and corporate sectors.
“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 failing to stabilize prices will have a bigger impact,” Powell said.
In addition, Powell said the Fed still needs to raise interest rates. And the Fed will not limit its options as it plans to raise rates more than usual in September.
Investors are concerned that increasing interest rate hikes by the Federal Reserve will affect liquidity in risky asset markets, including cryptocurrencies.
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Monday, August 29, 2022