On Saturday, Bitcoin dipped below $20,000, continuing a drop that has seen it decline by roughly 60% from its year-high.
The largest and most well-known cryptocurrency in the world, Bitcoin, was last down 1.5% on Saturday at $19,946, down $298 from its previous closing.
It has decreased by 58.7% since the year’s peak of $48,234 on March 28.
The ethereum blockchain network’s native currency, ether, dropped 2.76% to $1,467.2, losing $41.60 from its previous closing.
The drop in Bitcoin comes after a tough day for the currency on Friday, when all three benchmarks on Wall Street ended the day more than 3% lower.
FED Effects on Bitcoin Prices
Risk asset prices declined after Federal Reserve Chairman Jerome Powell warned against anticipating a quick end to the Fed’s rate tightening. Some investors have predicted further losses for stocks as a result of the Fed’s interest rate decisions.
According to Edward Moya, senior market analyst at OANDA, “Bitcoin broke below 20,000 as investors expect a weekend full of pessimism from Jackson Hole to drag down sentiment.”
Many traders are preparing for a weak open on Sunday night because European and Asian central bankers are likely to be much more pessimistic than Fed Chair Powell, he continued.
Bitcoin was last below $20,000 in mid-July.