BTC drops to near $20,700 after Fed Chair Powell’s speech

Bitcoin fell almost 5% to $ 20,822 after Federal Reserve Chairman Jerome Powell spoke at Jackson Hole on Aug. 26, saying that restoring inflation back to ideal levels will take time.

Powell briefly spoke at the event and talked about the importance of price stability. He noted that price stability is the “bedrock of the economy” and that the economy won’t benefit anyone without it. He stressed that price stability must be regained and preserved, but until the economy reaches that level, “there will be some pain to households and businesses.”

Powell said:

“restoring price stability will take some time and means using [FED] tools forcibly.”

Bitcoin price

Bitcoin price fell by 2% during Powell’s speech, falling from $21,830 to $21,548. The fall continued for three more hours after the speech, falling by 5% to reach as low as $20,743.

Bitcoin price experienced a small bull run in recent weeks, reaching the level of $24,000. However, as the market closes for the weekend, the price of Bitcoin is following a downward trajectory.

Journalist at CryptoSlate

Zeynep is an academic who turned to crypto in 2018. Originating in social sciences, she is especially interested in the social impact of blockchain and cryptocurrencies and strongly believes in their transmuting power.