Crypto News – As global bond selling causes US Treasury yields to reach multi-year highs, the value of Bitcoin declines. Bloomberg reports that the Federal Reserve meeting will be scrutinized for hints about future policies.
Bitcoin Decline Continues with $25k as Global Economy Collapses
The largest digital asset decreased by almost 1% on Monday, trading close to a two-month low of $26,000. Ether and XRP, two additional cryptocurrencies, also saw a decrease.
Jerome Powell’s Remarks Will Inform Policy Direction
The annual symposium of the Federal Reserve will be held in Jackson Hole this week, and it will be widely observed. Fed Chair Jerome Powell’s remarks on Friday are anticipated to provide hints about the direction of policy. The 10-year US Treasury yield has risen over 4.33%, and analysts are pessimistic about the outcome, anticipating a further 2% to 3% decline in the S&P 500 stock index. According to reports, Bitcoin‘s drop has reached roughly $25,000.
The possibility of US spot Bitcoin and Ether futures exchange-traded funds, which are now being applied for, has some in the cryptocurrency business optimistic despite the macro risk. Other indicators, however, point to a reluctance among institutional and individual investors to invest in cryptocurrencies as a result of the market crash last year, failures like FTX, and a constantly changing regulatory environment.
Signals Create Mixed Charts
Some technical indicators that chart watchers study show that Bitcoin is getting close to the most oversold level since mid-2022. Some analysts, though, believe that if it drops below $25,700, the economy may be about to undergo a severe contraction.
The decline in the value of bitcoin last week was the biggest since the demise of the FTX cryptocurrency exchange in the fourth quarter of 2022, and its gain for the year as a whole is now only 57%, down from 90% through mid-July.
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