Crypto currencies drop amid Fed rate hike signals

Nearly all top crypto currencies declined during the last 24 hours, except Tron, which added 0.11 per cent to $0.07732, and posted a 2.37 per cent gain on the week

Bitcoin dropped with most of the leading crypto currencies in afternoon trading in Asia on Monday as traders remained cautious after Fed chair Jerome Powell said at the Jackson Hole Symposium on Friday that tight monetary policy is required until inflation slows down considerably.

Bitcoin shed 0.44 per cent to $25,915, bringing its weekly losses to 0.36 per cent. The token’s market cap dropped 0.41 per cent to $504.7 billion as its trading volume increased 40.10 per cent during the last 24 hours, according to CoinMarketCap data.

The crypto currency market is experiencing a downturn on Monday, with Bitcoin and most top alternative currencies trading in the red zone, Rania Gule, market analyst at XS.com stated on Monday.

According to Gule, the decline in prices comes after Powell said in his keynote address at the Jackson Hole Symposium that the central bank is prepared to increase interest rates further, if required, adding that future decisions would be made with caution.

Bitcoin prices have been trading within a tight range between $25,752 and $26,282 over the past few days. In the meantime, technical indicators are nearing the overbought zone on both the short and medium-term scales, indicating a potential upward reversal for Bitcoin, Gule added.

Nevertheless, there would not be a considerable upward movement without a strong breach of the strong resistance level at $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 $25,500 and $25,100, respectively, Gule said.

Nearly all top crypto currencies declined during the last 24 hours, except Tron, which added 0.11 per cent to $0.07732, and posted a 2.37 per cent gain on the week.

BNB, the native token of world’s biggest crypto exchange Binance, shed 0.32 per cent to $216, although it has added 0.66 per cent on the week.

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