By Omayma
othmani
Published:
August 29, 2022
The world's largest cryptocurrency, Bitcoin, fell by 5% on Friday to reach an overnight low of $19,526, the lowest level since July 13, according to Coin Metrics data.
The sharp decline in cryptocurrencies coincided with large sell-offs in US stocks, triggered by Fed Chair Jerome Powell’s commitment to stop inflation and the Dow Jones Industrial Average falling 1000 points on Friday, after Powell said he expects the central bank to continue raising interest rates in a way that will cause "some pain" to the US economy, with futures also indicating further losses ahead.
Edward Moya, senior market analyst at Oanda, said: "Bitcoin weakened after Fed Chair Powell’s confirmation that the Fed will tighten policy to reduce inflation of risk assets, as Powell’s battle against inflation will remain fierce even as it leads to an economic slowdown."
Bitcoin also dropped more than 3% last week, marking its third consecutive negative week; the cryptocurrency has fallen more than 50% this year and remains down 70% from its all-time high of $68,990.90 in November.
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