Home Markets Crypto prices plummet after Powell’s hawkish comments spook financial markets

Crypto prices plummet after Powell’s hawkish comments spook financial markets

Crypto prices plummet after Powell’s hawkish comments spook financial markets

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(Kitco News) – The reservations many had about market exposure ahead of today’s Jackson Hole summit proved well justified as hawkish comments from Fed Chairman Jerome Powell sent asset prices crashing on global financial markets on Friday.

As of this writing, the S&P 500 fell 2.15% on the day, while the Dow and NASDAQ fell 1.85% and 2.57% respectively, while the vast majority of crypto -Top 100 currencies are now in the red for the day.

Daily performance of the cryptocurrency market. Source: Coin360

Data from TradingView shows that Bitcoin (BTC) the price saw a saw effect following Powell’s comments, initially falling from $21,130 to a daily high of $21,895, then falling more than 6.22% to a daily low of 20,530 $.

BTC/USD 1 hour chart. Source: Trading View

This result was not entirely unexpected for Kitco Crypto readers, as Kitco Senior Market Analyst Jim Wyckoff warned of the possibility of a downturn in his morning Bitcoin briefing on Friday.

“The bears have the slight overall short-term technical advantage. The recent break produced a “collapse in volatility,” suggesting that a bigger price move is on the horizon. The technical odds slightly favor this downward move. Market prices tend to oscillate between periods of higher volatility and periods of lower volatility, and some higher volatility is now due,” Wyckoff warned.

Ether Falls Despite Merge Hype

The best Ethereum altcoin (ETH) has been in the news for the past few weeks as its transition to a proof-of-stake consensus mechanism, known as a merge, looks set to complete on or around September 15.

It seems the building hype wasn’t enough to shield Ether from J. Powell’s comments, as the smart contract platform saw its token price make a similar circular saw move to hit a daily low of $1,565, and is currently down 7.3% on the 24-hour chart.

ETH/USD 1 hour chart. Source: Trading View

Data from CoinMarketCap shows that of the top 200 tokens, only a handful of coins managed to gain amid the widespread downturn.

The biggest gainer in the past 24 hours has been Braintrust (BTRST), which climbed 10.74% to a price of $2.11, followed by a 5.3% increase for Conflux (CFX) and a 5.3% increase in the price of Tribe (TRIBE).

The overall cryptocurrency market capitalization now stands at $999 billion and Bitcoin’s dominance rate is 39.7%.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.


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