Bitcoin Suffers Huge Drop This Week After Fed Minutes

The most popular cryptocurrency was valued at around $24.000, however, since the United States Federal Reserve’s latest policy discussions, Bitcoin’s price has dropped significantly.

The largest digital asset started its rapid decline on Friday, falling from around $23,000 to below $21,000. It is currently trading at less than one-third of its all-time high, which was near $69,000 in November 2021.

However, things started to look more stable over the weekend. Bitcoin bounced back up when it reached a $21.000 resistance line on Saturday and started a modest upward motion. Bitcoin reached $21.500 on Sunday, and at the moment BTC is trading around $21.120.

In an email to CoinDesk, the CEO of BitBull Capital shared his expert opinion on the matter:

“Bitcoin’s failure to breach $25,000 has capped its rally and it appears that macroeconomic concerns continue to affect markets,” DiPasquale said. “That healthy consolidation leading into September will be a positive sign for the bulls, especially if bitcoin does not create a new low below $18,000.”

Important News This Week

Investors are looking forward to an upcoming announcement by the President of the United States Federal Reserve, Jerome Powell.

Powell is scheduled to speak on Friday, August 26th at the Federal Reserve Bank of Kansas City’s Jackson Hole Economic Symposium.

The market is expecting Powell to share a potential sign as to where the Federal Reserve is intending to go from here. The Federal Reserve will have an important meeting at September’s Federal Open Market Committee (FOMC).

Crypto World Is Licking its Wounds

Bitcoin is far from being the only cryptocurrency affected by the Fed Minutes. The second largest crypto, Ethereum, also suffered a gigantic loss.

On Wednesday, Ethereum reached a $1.900 peak. However, after the Federal Reserve’s policy announcement, Ethereum suffered a huge drop and is currently trading at around $1.600.

Nearly all cryptos followed the downward trend after the last policy updates. Cryptocurrencies like Solana, DogeCoin, Polygon, and BNB all suffered from the same fate.

Despite that fact, positivists might look at this as an opportunity to invest. As the cryptocurrency world stabilizes, investors are looking forward to the next big news that might pump up the market.

One of the most expected news is Ethereum’s largely anticipated “The Merge”. Ethereum will transition its mining method from “proof-of-work” to a cleaner and more environmentally-friendly method known as “proof-of-stake”.

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