The Crypto Report: Bitcoin extends its slide on interest-rate concerns

Bitcoin extended its decline below the $20,000 support level in early Monday trading after US Federal Reserve chair Jerome Powell told delegates at the Jackson Hole conference on Friday that interest rates would continue to rise to try and tame inflation.

The biggest crypto by market cap was trading just above $19,500 dollars Monday morning, while Ethereum declined over 4% to $1,422.

Other large coins including XRP, Cardano, Solana and meme coin Dogecoin also continued to come under pressure.

Analysts say the selloff in the equity markets is likely to put further pressure on crypto, with the next natural target for Bitcoin bears standing near $17,500.

Avatrade chief market analyst Naeem Aslam said the price of Bitcoin has recently developed a strong link with the Federal Reserve’s monetary policy, such that as the Fed tightens policy, the price of Bitcoin falls. This association between the Federal Reserve’s monetary policy and the price of Bitcoin has become stronger in recent times, and it’s a big reason why the Bitcoin price crashed from its all-time high.

Going forward, Aslam said traders may want to continue to watch this correlation closely as a number of Fed board members will deliver their views on monetary policy which is likely to influence the price of Bitcoin.

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