Fall Of Bitcoin And Ethereum Liquidate More Than USD 300 Million
✍️ 30 August, 2022 - 16:43 👤 Editor: Jakub Motyka
- The price of Bitcoin (BTC) and Ethereum (ETH) fell more than 6% over the weekend.
- The liquidations of the The cryptocurrency market reached 300 million dollars.
- Does it have to do with the speech of the president of the Federal Reserve, Jerome Powell?
During the weekend, the price of Bitcoin, Ethereum and the main cryptocurrencies in the market had a significant drop causing position liquidations. This had a direct impact on the futures market, where liquidated positions reached USD 300 million. On the other hand, the BTC broke the barrier of 20,000 and decreased by 6.6% of its value, as well as ETH by 11%.
At the same time, in the last week of this month, the overall cryptocurrency market remained relatively stable. The latest reports on economic indices were better than expected, and this filled investors in the different markets with confidence. However, after the statements of the president of the Federal Reserve, Jerome Powell, fear returned to the streets.
What Were Powell's Statements That Made Bitcoin, Ethereum, And Other Cryptocurrencies Fall?
The president of the FED, Jerome Powell, assured during his annual speech in Jackson Hole that the United States economy should “prepare for more acute pain”. In other words, the central bank will continue to take measures to reduce inflation. Among which is a new rise in interest rates.
On this, Powell noted that “restoring price stability will take some time and requires the energetic use of our tools to achieve a better balance between supply and demand. While higher interest rates, slower growth and softer labor market conditions will reduce inflation, they will also bring some pain to households and businesses.”
What Happened After Powell's Words?
After Powell's speech, the market in general had a sharp drop in its prices, affecting the liquidated positions of Bitcoin, Ethereum and other cryptocurrencies. Both DowJones, SP500 and Nasdaq as well as the market were negatively affected by the possibility of a new rise in interest rates. Futures market settlements in Bitcoin (BTC) reached 83 million, while Ethereum (ETH) reached 135 million.
Similarly, the vast majority of altcoins experienced sharp declines. Cases such as Ripple (XRP) registered a decrease of 5.6%, Solana (SOL) 9.9%, Shiba Inu (SHIB) 12.5%, and with them, a large number settlements in the futures market.
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