The Fed’s warning of “some pain” to households and businesses brings down Bitcoin and Ethereum again

On the path to fighting inflation.

- Advertisement -

Cryptocurrency markets retreated after Federal Reserve Chairman Jerome Powell’s long-awaited speech at Jackson Hole in Wyoming on Friday.

Powell noted that the Fed will continue to “use our tools vigorously” in the battle against inflation, warning of “some pain” ahead. “Although higher interest rates, slower growth and softer labor market conditions will reduce inflation,” he continued, “they will also bring some pain to households and businesses. This is the unfortunate price of lower inflation. But a failure to restore price stability would mean much more pain.”

Since the start of Powell’s speech, Bitcoin has fallen more than 4%, from $21,743 to a 24-hour low of $20,774 on Friday, according to CoinGecko. The largest cryptocurrency by market value is currently trading at $20,797.

Ether, the second largest cryptocurrency, fell more than 5%, dropping from $1,687 this morning to a 24-hour low of $1,595.

Altcoins are also in the red, with Cardano, Solana and Polkadot down around 4% in the last hour.

Equities similarly fell on the news. The Dow Jones industrial average fell 507 points or 1.52%. The S&P 500 fell 1.9%. And the Nasdaq Composite fell 2.43%.

- Advertisement -

Analysts will continue to watch the Fed’s comments closely, Bitwise CIO Matt Hougan told Fortune on Thursday, adding that Powell’s Jackson Hole speech could “set the tone for monetary policy for the rest of the year.”

Looking ahead to September, “one thing is certain: It’s not going to be a quiet month for crypto in terms of news flow,” Hougan concluded.

Previous Articles:

- Advertisement -

Latest

Michael Saylor Invites Joe Rogan to Discuss Bitcoin on Podcast

Michael Saylor has shown interest in discussing Bitcoin on The Joe Rogan Experience podcast.The idea has generated excitement in the Bitcoin community, with some...

Congress Debates Stablecoin Bill Amid Rising Bank and Crypto Tensions

U.S. lawmakers are moving forward with the Senate Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, with debates set to resume after...

American Engineer Drugged, Robbed in Sophisticated London Crypto Heist

An American software engineer lost approximately $123,000 in cryptocurrency after being drugged and robbed in London.The victim was targeted by an impersonator posing as...

Max Keiser Doubts New Bitcoin Treasuries’ Discipline in Bear Market

Bitcoin-focused companies are increasingly copying the treasury strategy used by Michael Saylor's Strategy.Max Keiser raised doubts about whether these newer companies can maintain commitment...

South Korea Election Puts Crypto Policy at Center of Debate

Nearly one-third of South Koreans hold digital assets, making crypto a vital issue in the upcoming presidential election.Both major parties support crypto exchange-traded funds...

Must Read

9 DePIN Programs For Passive Income

Here’s something most people don’t realize: your smartphone and PC can generate passive income with almost no effort.I’m not talking about clicking ads for...