Powell’s ‘Big Step’ remarks… Bitcoin below $40,000
Cryptocurrency prices continue to decline. As the US stock market plunged due to hawkish remarks by US Federal Reserve Chairman Jerome Powell, major cryptocurrencies (virtual currencies) such as Bitcoin are also falling one following another.
According to CoinMarketCap, a global coin market relay site on the 24th, as of 8:25 am (Korean time), Bitcoin was down 0.17% from 24 hours ago to $39,800.
Bitcoin’s decline is attributed to the hawkish remarks of Fed Chairman Powell.
“At this point, the central bank’s main goal is to keep inflation down while at the same time keeping the economy from sinking in the process,” Powell said on a panel at the International Monetary Fund (IMF) meeting on the 22nd.
He also said that a 0.5 percentage point rate hike is also on the table. This is the first time he has mentioned that he can make a big step (0.5 percentage point increase at a time).
Global stock markets plunged at the same time as Chairman Powell’s hawkish remarks.
On the 22nd (local time), the Dow plunged 2.82%, the S&P 500 fell 2.77%, and the Nasdaq plunged 2.55%. This is a larger drop than the previous day. The New York Stock Exchange fell 1.05% on the Dow, 1.48% on the S&P 500 and 2.07% on the Nasdaq.
