Bitcoin Falls Below $20,000 After Fed’s Hawkish Tone; Down Nearly 60% From Its Peak

Bitcoin fell below $20,000 on Saturday, continuing its decline, dropping nearly 60% from its yearly high.
Bitcoin, the world’s largest and best-known cryptocurrency, was last down 1.5 percent at $19,946 on Saturday, $298 lower than its previous close.

It is down 58.7% from its yearly high of $48,234 set on March 28.

Meanwhile, ether, which is connected to the ethereum blockchain network, fell 2.76 percent to $1,467.2, down $41.60 from its previous close.

Bitcoin’s decline came after a weak day for the currency on Friday, which saw all three benchmarks close down more than 3 percent as Wall Street tumbled.

Risk assets weakened after Federal Reserve Chairman Jerome Powell warned that rate hikes are expected to end quickly. The Fed’s action on interest rates has led some investors to predict further setbacks for stocks.

“Bitcoin dipped below 20,000 as investors expected pessimism in Jackson Hole over the weekend to weigh on sentiment,” Edward Moya, senior market analyst at OANDA, said Saturday.

“Central bankers in Europe and Asia are likely to be much more dovish than Fed Chair Jerome Powell, which has prepared many traders for a weaker opening Sunday night,” he added.

The last time Bitcoin fell below $20,000 was in mid-July.

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