Bitcoin reacts sharply to Fed Chair Jerome Powell’s speech

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  • The price of bitcoin fell sharply below $21,000 on Friday following Jerome Powell’s remarks.
  • The downside followed a similar reaction on Wall Street, with the S&P 500 down 2%.
  • Powell said in his Jackson Hole speech that the Fed will remain aggressive “until the job is done.”

Bitcoin (BTC/USD) fell below $21,000 on Friday afternoon, touching a low of around $20,700 at the time of writing.

The price support level of the cryptocurrency could be seen at $20,000 or lower, which came after US Federal Reserve Chairman Jerome Powell’s Jackson Hole speech.

Fed to raise rates

The Jackson Hole Symposium, which brings together central bankers, economists and other prominent policy makers, is an annual event that has often coincided with increased market volatility around the highly anticipated commentary.

So, after Powell Maintained An aggressive stance, reiterating that central banks will raise interest rates on inflation “until it’s done”, both stocks and cryptocurrencies – risky assets – have fallen sharply.

The S&P 500 is down 2%, the Nasdaq is down nearly 2.6% and the Dow Jones Industrial Average is down more than 500 points, or -1.6%.

Bitcoin price is down around 4% and vulnerable to fresh losses at a key support level at $20K, which analysts see as critical for the bulls’ short-term plans.

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