Bitcoin Lost Further Following Jerome Powell Speech
Bitcoin took another hefty fall in late August. The world’s number one digital currency by market cap fell to just over $20,000 following the speech given by Jerome Powell of the Fed in which he talked about the state of the economy.
Bitcoin Is Continuing to Experience Bearish Trends
Powell hinted that more rate hikes were likely in order, meaning bitcoin is set to suffer further at the hands of what can only be considered, at this point, to be an extremely incompetent government that has proven incapable of seeing ahead, but not all bitcoin analysts are citing gloom and doom, and instead believe that the time to purchase BTC and potentially get rich is now.
Among those saying now is the time to buy is Jean-Baptiste Graftieaux, the chief executive of Bit Stamp. He stated in an interview recently:
Many institutional companies are looking to make their first move into crypto. There is massive crypto interest from our institutional clients… Generally, on how long the crypto winter will last, it is a bit too early to say when and how, but what I feel personally is that we are in a more positive trend now compared to the last couple of months, even though the climate is still very uncertain. In the coming quarters, we will probably see more positive indicators, maybe not of a bull run, but of some positive evolution on the markets.
Charles Edwards, founder of quantitative crypto fund Capriole Investments, was also quick to say that bitcoin miners are once again entering the fray, noting a huge uptick in the bitcoin hash rate. He said:
Historically, these have been great times to allocate into bitcoin with incredible returns.
Speaking about Jerome Powell’s speech, Joe DiPasquale – the chief executive of hedge fund Bit Bull Capital – stated in a note:
Fed chair Jerome Powell’s speech… was perhaps slightly hawkish in that he mentioned that a ‘restrictive policy’ would be required for some time, and [he] spoke against ‘prematurely loosening policy.’ However, given this, we remain cautious of any upward move and maintain our stance of watching market reactions at key levels and looking to accumulate around the $20,000 – $18,000 range to start.
What’s It Going to Take?
Many are wondering what it’s going to take to get bitcoin to calm down and get itself squared away. The digital currency has been experiencing one of its greatest periods of fluctuation in recent days given that the asset was trading for a new all-time high of about $68,000 per unit last November.
However, from there, the currency has experienced a rapid string of losses that has ultimately made it give up roughly 70 percent of its overall valuation, and the asset is now struggling to maintain a position just in the low $20K range. It’s a sad and ugly sight to see.
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