Following the Federal Reserve’s annual meeting, crypto investors have seen another drop in prices. After Jerome Powell’s speech on combating inflation, many investors had hoped for a new trend in asset values. But from the turn of events, Powell tipped the scale against investors’ expectations. Many cryptocurrencies as well as equities are already showing a decline in price.
Ethereum (ETH), and other cryptocurrencies, have seen some price drops since August 25, 2017. After the meeting, ETH’s price tanked 9% and stood at $1555. However, the bears kept driving the price lower. ETH dropped to $1478 in the afternoon, but then began climbing steadily.
Similar Reading: Avalanche, (AVAX), Retries to Comeback, Unfazed by $2-B Market Cap Gains in the Last 2 Weeks
Current as of the writing ETH remains in redOn August 27, Price fluctuates between $14999 and $155. It fluctuates between $1499 and $1505.
Bitcoin And Stocks Didn’t Fare Better
Bitcoin and equity also lost ground after the Fed’s annual meeting. BTC’s early morning price was $21,596.09 on August 26th. The intraday peak was $21,804. BTC then began a downtrend, reaching a low point of $20,036. Then, it climbed slowly upwards. After the closing of the market BTC’s priceThe price was $20,260.02. BTC was at $20,206 as of August 27th. It fluctuates lower.
Other stocks also fell after Powell’s hawkish approach decision. For instance, S&P 500 lost more than 3% of its gains after the meeting. Dow Jones Industrial Average dropped more than 1000 points and Nasdaq Composite saw almost 4%.Source: ETHUSD price charts from TradingView.com
Are there any signs of a market reverse?
The crypto market expected a price movement depending on the meeting’s outcome. On August 26, many people voiced their concerns, saying that a dovish approach would result in positive price movements and a more bearish outlook.
Remember that Neel Kashkari, the Minneapolis Fed CEO, suggested using a Volcker Esque rule against inflation. Paul VolckerIt was Kashkari, the Fed Chair, who caused two recessions to stop inflation. Kashkari’s suggestion already had everyone worried about the outcome of the annual meeting. Unfortunately, Powel’s insistence that the central bank won’t adopt a dovish approach but will maintain its aggressive strategies to restore price stability has tipped the scale negatively.
Similar Reading: The TA- Binance Coin(BNB) loses $300 of its key support, are bears taking over?
Many analysts believe that the Ethereum Merge will increase crypto price.
There are many ways to get involved. $ETHDeposits into the Beacon Chain Contract are at a steady but low level of 220 per day.
Investors are awaiting a Merge that will be successful in mid-September to signify this stable holding pattern.
Live Chart: https://t.co/uVDy2zfZBr pic.twitter.com/rmXoSKAqr0
— glassnode (@glassnode) August 23, 2022
The current financial market events mean that the upgrade may not be as beneficial for Ethereum or other cryptocurrency prices. It is possible that another period of price crashes will be soon.
The data has already indicated that deposits of ETH to the Beacon Chain are decreasing. Also, many people are stating that the market has already “Priced In” the Merge.
Featured image taken from Pixabay. Chart from TradingView.com