Ethereum Price Plummets 9% As Fed Chair Passes Hawkish Remarks
August 27 2022 - 8:29PM
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The crypto community has witnessed another price plunge after the
just concluded Federal Reserve annual meeting. Many investors
already anticipated a new turn in asset prices after Jerome Powell
spoke on the approach to combat inflation. But from the turn of
events, Powell tipped the scale against investors’ expectations. As
a result, many cryptocurrencies and equities have already started a
downward price trend. Ethereum (ETH) and many other
cryptocurrencies have lost some August 25 price gains. After the
meeting, ETH’s price tanked 9% and stood at $1555. But the bears
continued to push the price lower. Some hours later, in the
evening, ETH plummeted lower to $1478 before climbing up
gradually. Related Reading: Avalanche (AVAX) Tries Comeback,
Unfazed By $2-B Market Cap Loss In Last 2 Weeks As of the time of
writing, ETH is still in the reds on August 27. The price
fluctuates between $1499 and $1505. The coin struggled to climb a
bit higher than the August 26 lowest point of $1478 to stand at
$1,499, showing a 9.68% loss. Bitcoin And Stocks Didn’t Fare
Better Bitcoin and equities lost gains following the Fed
annual meeting too. BTC price early morning August 26 was
$21,596.09. It recorded an intraday high of $21,804. But later, BTC
started a terrible downtrend to a peak low of $20,036 before
climbing sluggishly upwards. At the close of the market, BTC’s
price was $20,260.02. As of August 27, BTC is at $20,206 and still
fluctuating 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
lost more than 1000 points while Nasdaq Composite recorded almost
4%. Any Market Reversal in Sight? The crypto
market expected a price movement depending on the meeting’s
outcome. Many people expressed their worries on August 26 before
the meeting, stating that a dovish approach will mean positive
price movement while a hawkish decision will mean an extended
bearish trend. Recall that the Minneapolis Fed CEO and
President Neel Kashkari suggested a Volcker Esque rule to combat
inflation. Paul Volcker was the Fed Chair who created two
recessions to fight 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.
Related Reading: TA- Binance Coin (BNB) Loses $300 Key Support, Are
Bears Taking Over? It is happening when many analysts expect the
Ethereum Merge to improve crypto prices. The number of $ETH
deposits into the Beacon chain contract is now at a stable but
macro low of 220 deposits/day. This may signify a stable holding
pattern is been reached, as investors await a successful Merge,
scheduled for mid-September. Live Chart: https://t.co/uVDy2zfZBr
pic.twitter.com/rmXoSKAqr0 — glassnode (@glassnode) August 23, 2022
But with the current events in the financial markets, the upcoming
upgrade might not have the desired positive effect on Ethereum and
other crypto prices. Another period of price crash might be
imminent. Data have already shown that the deposits of ETH
into the Beacon Chain have reduced. Also, many people are stating
that the market has already “Priced In” the Merge. Featured image
from Pixabay and chart from TradingView.com
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