Fed's Hawkish Comments and Bitcoin Derivatives Data Point to Further Lower BTC
BTC and stocks sold off after comments from the Federal Reserve that reaffirmed the Fed's commitment to lower inflation raised in the United States.
Market analysis
A $750 pump on August 26 took Bitcoin (BTC) from $21,120 to $21,870 in less than two hours. However, the move was completely erased after comments from US Federal Reserve Chairman Jerome Powell reiterated the bank's commitment to containing inflation by tightening the economy. After Powell's speech, the price of BTC dropped to $20,700.
Bitcoin/USD 30 minute price. Source: TradingViewIn Jackson Hole, Powell specifically mentioned that "the historical record strongly cautions against premature policy easing." Immediately after the remarks, US equity indices reacted negatively, with the S&P 500 falling 2.2% within the hour.
On the Bitcoin chart, the affable "Bart Candle," a reference to the shape of Bart Simpson's head and a descriptor of BTC's price action, has surfaced. Apart from these unpredictable technical analysis indicators, there are other indicators that underlined Bitcon's broader neutral to bearish sentiment.
Regulators Accelerate Pace of Crypto LegislationCrypto news flow has been negative for some time, which is also weighing on investor sentiment. On August 24, the U.S. Federal Deposit Insurance Corporation (FDIC) sent cease and desist letters to five companies for allegedly making misrepresentations regarding deposit insurance related to cryptocurrencies, including FTX US.
On August 25, India-based crypto exchange CoinSwitch had its premises raided
BTC and stocks sold off after comments from the Federal Reserve that reaffirmed the Fed's commitment to lower inflation raised in the United States.
Market analysis
A $750 pump on August 26 took Bitcoin (BTC) from $21,120 to $21,870 in less than two hours. However, the move was completely erased after comments from US Federal Reserve Chairman Jerome Powell reiterated the bank's commitment to containing inflation by tightening the economy. After Powell's speech, the price of BTC dropped to $20,700.
Bitcoin/USD 30 minute price. Source: TradingViewIn Jackson Hole, Powell specifically mentioned that "the historical record strongly cautions against premature policy easing." Immediately after the remarks, US equity indices reacted negatively, with the S&P 500 falling 2.2% within the hour.
On the Bitcoin chart, the affable "Bart Candle," a reference to the shape of Bart Simpson's head and a descriptor of BTC's price action, has surfaced. Apart from these unpredictable technical analysis indicators, there are other indicators that underlined Bitcon's broader neutral to bearish sentiment.
Regulators Accelerate Pace of Crypto LegislationCrypto news flow has been negative for some time, which is also weighing on investor sentiment. On August 24, the U.S. Federal Deposit Insurance Corporation (FDIC) sent cease and desist letters to five companies for allegedly making misrepresentations regarding deposit insurance related to cryptocurrencies, including FTX US.
On August 25, India-based crypto exchange CoinSwitch had its premises raided
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