Bitcoin Takes Hit after Powell Says U.S. Central Bank May Well Keep Raising Interest Rates Blockchain News, Opinion, TV and Jobs

The second largest digital asset, Ethereum, followed suit, trading around $1,584,82 at the time of writing.

The US Federal Reserve (Fed) has raised interest rates several times this year in an effort to curb inflation, which is currently at its highest level in 40 years.

The Kansas City Federal Reserve Bank has recruited dozens of central bankers, policymakers, academics and economists Annual Economic Policy Symposium at Jackson Hole It was held to reassess economic and policy constraints.

Speaking there on Thursday, Powell said he would keep his remarks short and focused. Higher interest rates, slower growth, and a softer labor market will bring inflation down while also causing some pain for households and businesses. These are the unfortunate costs of keeping inflation under control. But failure to restore price stability would mean far more pain.

of world stock market While reacting sharply to the announcement, the impact was more pronounced in the crypto market. Other major cryptocurrencies, Solana and Avalanche, have also fallen 13% and 20% over the past seven days.

However, Bitcoin’s market dominance has remained fairly constant. Across the crypto market he continues to hold over 39% share, while Ethereum holds almost 19% of the overall market share.