Why does Bitcoin price keep dropping? The price of the number one cryptocurrency held at US$20,000 after the US central bank’s annual meeting in Jackson Hole.
Previously, the price was stuck in a multi-day range of motion from August 20 to 25, in the range of low week after collapse from level US$25,000.
Bitcoin Price Keeps Down
Based on reports Cointelegraphcomment hawkish from the Fed Chair, Jerome Powell, has brought a strong boost to the value of the US dollar (DXY).
as DXY continues to rise, the impact of the signal The Fed which will continue to raise rates at the upcoming FOMC meeting, which is expected to raise 50-75 basis points.
And for Bitcoin and other crypto assets, low interest rates are the only condition for continuing long bull run.
Meanwhile, DXY is likely to continue strengthening until the end of 2023, up to 112 basis points.
The value of the US dollar that continues to strengthen is beneficial for the US, because it can reduce import costs in order to reduce domestic inflation to 2 percent according to the central bank’s target.
After Powell spoke at the Jackson Hole symposium on August 26, 2022, the price of Bitcoin immediately fell from the range of US$21,852 (26 August 2022 at 20:03 WIB), to US$19,950 (27 August 2022, 12:14 WIB).
“In addition, there will likely be some softening of conditions for the labor market. Meanwhile, higher interest rates, slower growth and weaker labor market conditions will reduce inflation. It will also bring suffering to households and businesses. This is the unfavorable cost of [upaya] reduce inflation. But failure to restore price stability will lead to far greater suffering,” Powell said in a speech at the Jackson Hole symposium.
He added that quantitative tightening is likely to be implemented for some time. This is what sparked a huge sell-off in riskier assets like stocks and cryptocurrencies, including answering why Bitcoin prices continue to fall.
In response to the speech, Bitcoin supporter Will Clemente say that Powell didn’t say anything meaningful at the symposium. Everything looks the same as the usual central bank.
And at the time of writing, the price BTC trying to recover lightly in the range of US $ 20,000, but still not showing any sign of recovery. So, encouragement bearish still looming from the technical and fundamental side. [st]