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

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On the path to fighting inflation.

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%.

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.

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