NewsletterPowell Warns Of Impending Pain, Bitcoin, Ethereum Plummet
Bitcoin (BTC) and Ethereum (ETH) plummeted immediately after Fed Chair Jerome Powell began the Jackson Hole speech. In one hour from start of the Fed Chair’s speech, BTC and ETH prices fell 1.83% and 1.80% respectively. This sharp fall comes at a time when macroeconomic factors are unfavorable to the cryptocurrency industry. Following the inflation data release earlier this month, the crypto market experienced a short rally. This came as a relief for the crypto traders who had a tough time this year due to high volatility.
Powell Speech Leads To Immediate Fall In Bitcoin Price
Powell began his speech saying the focus is on bringing inflation back to the 2 percent goal. The Fed Chair stressed on the importance of price stability for the economy and the Fed’s responsibility in it. He said higher interest rates, slower growth, and softer labor market conditions will bring down inflation. They will also bring some pain to households and businesses, he added in the Jackson Hole speech.
“Restoring price stability will take some time and requires using our tools forcefully to bring demand and supply into better balance. Reducing inflation is likely to require a sustained period of below-trend growth.”
A Slowing U.S. Economy
The Federal Reserve Chair said the U.S. economy is clearly slowing from the historically high growth rates of 2021. The growth in 2021 reflected the reopening of the economy following the pandemic recession, he explained. Powell opined that the country’s economy continues to show strong underlying momentum despite mixed economic data. “The labor market is particularly strong, but it is clearly out of balance, with demand for workers substantially exceeding the supply of available workers.”
Meanwhile, the price drop in Bitcoin and Ethereum after Powell speech is reflecting in the price movements of other cryptocurrencies. As of writing, Bitcoin is trading at $21,271, down 1.94% in the last 24 hours. Ethereu, on the other hand, is trading at $1,641.91, down 4.16% in the last 24 hours.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- BlackRock Bitcoin ETF Ranks Among Top ETFs In 2025 Despite Crypto Downturn
- Stablecoin Adoption Deepens as Klarna Turns to Coinbase for Institutional Liquidity
- Ripple, Circle Could Gain Fed Access as Board Seeks Feedback on ‘Skinny Master Account’
- Fed’s Williams Says No Urgency to Cut Rates Further as Crypto Traders Bet Against January Cut
- Trump to Interview BlackRock’s Rick Rieder as Fed Chair Shortlist Narrows to Four
- Will Solana Price Hit $150 as Mangocueticals Partners With Cube Group on $100M SOL Treasury?
- SUI Price Forecast After Bitwise Filed for SUI ETF With U.S. SEC – Is $3 Next?
- Bitcoin Price Alarming Pattern Points to a Dip to $80k as $2.7b Options Expires Today
- Dogecoin Price Prediction Points to $0.20 Rebound as Coinbase Launches Regulated DOGE Futures
- Pi Coin Price Prediction as Expert Warns Bitcoin May Hit $70k After BoJ Rate Hike
- Cardano Price Outlook: Will the NIGHT Token Demand Surge Trigger a Rebound?
