Bitcoin fell with most of the top 10 non-stablecoin cryptocurrencies in afternoon trading in Asia on Monday as traders remained cautious after Federal Reserve chair Jerome Powell said at the Jackson Hole Symposium on Friday that tight monetary policy is necessary until inflation slows down significantly.
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Bitcoin hungover post-Jackson Hole weekend
Bitcoin lost 0.44% to US$25,915 in 24 hours to 4 p.m. in Hong Kong, bringing its weekly losses to 0.36%. The world’s biggest cryptocurrency’s market capitalization fell 0.41% to US$504.7 billion as its trading volume rose 40.10% in the past 24 hours, according to CoinMarketCap data.
“The cryptocurrency market is witnessing a downward trend on Monday, with Bitcoin and most major alternative currencies trading in the red zone,” Rania Gule, market analyst at multi-asset brokerage firm XS.com, said in an emailed statement on Monday.
According to Gule, the drop in prices comes after Powell said in his keynote address at the Jackson Hole Symposium that the central bank is prepared to raise interest rates further, if necessary, adding that future decisions would be made with caution.
“Bitcoin prices have been trading within a tight range between US$25,752 and US$26,282 over the past few days. Meanwhile, technical indicators are approaching the overbought zone on both the short and medium-term scales, suggesting a potential upward reversal for Bitcoin,” Gule said.
“However, there won’t be a significant upward movement without a strong breach of the formidable resistance level at US$30,000 and a daily close above it. At the same time, the bearish sentiment still holds sway over Bitcoin and the digital currency market in the short term, with potential targets of US$25,500 and US$25,100, respectively,” Gule added.
Almost all top 10 non-stablecoin cryptocurrencies dropped in the past 24 hours, except Tron, which gained 0.11% to US$0.07732, and posted a 2.37% rise on the week.
BNB, the native token of world’s largest crypto exchange Binance, lost 0.32% to US$216, although it has gained 0.66% on the week. According to a Wall Street Journal report on Friday, Binance has removed sanctioned Russian banks from its peer-to-peer trading service, and has reportedly ceased processing transactions involving five blacklisted Russian banks.
The total crypto market capitalization dropped 0.62% to US$1.04 trillion while market volume gained 27.69% to US$18.86 billion in the past 24 hours.
