All of the top 10 cryptocurrencies by market capitalization, including Bitcoin, Ether, and others, experienced losses on Monday morning in Asia. After U.S. Federal Reserve Chairman Jerome Powell shocked the cryptocurrency and equity markets on Friday with remarks about impending economic hardship as the Fed raises interest rates to combat inflation, the downturn has continued into the weekend.
- According to data from CoinMarketCap, Ether fell 4% to US$1,430 and Bitcoin shed 2.2% to trade at US$19,615 at 8 a.m. in Hong Kong.
Following Powell’s remarks.
- Bitcoin lost below US$20,000 on Saturday for the first time since mid-June, falling 7% in a single day. As of 8 a.m. in Hong Kong, the total market capitalization of cryptocurrencies fell below US$1 trillion to US$953 billion.
- Cardano suffered the most loss, falling 4.3% to $0.43. BNB didn’t alter much, falling 0.5% to US$276.
- On Friday, the Dow Jones Industrial Average saw its worst trading day since May, dropping 3%. In their worst trading day since June, the S&P 500 Index fell 3.4% and the Nasdaq Composite Index fell 3.9%.
- Powell said in his opening remarks at the Fed’s economic symposium on Friday in Jackson Hole, Wyoming, that “restoring price stability would probably involve keeping a restrictive policy stance for some time.” Powell further stated that the Fed would wait to reduce interest rates until inflation returned to the target range of 2%.
Following Powell’s speech, financial markets increased their expectation that the Federal Reserve will raise interest rates by 75 basis points at its next meeting in September. Prior to his remarks, the market was split on whether to expect a hike of 50 or 75 basis points.