The price of Bitcoin (BTC) has fallen below $20,000 U.S. as investors sell riskier assets in anticipation of higher interest rates.
The world’s biggest digital coin by market capitalization hit a low of $19,526 U.S. in early trading Monday (August 29), its lowest level since July 13, according to data from Coin Metrics.
All major cryptocurrencies sold off, with the price of Ethereum (ETH), the second biggest digital asset, dropping to $1,423, its lowest level in more than a month.
The sharp decline in cryptocurrency prices comes after U.S. Federal Reserve Chairman Jerome Powell reiterated his commitment to lower inflation with continued interest rate hikes in coming months.
The Dow Jones Industrial Average fell more than 1,000 points last Friday (August 26) after Fed Chair Powell said that he expects the central bank to continue raising interest rates and that “some pain” is ahead for the U.S. economy as a result.
Bitcoin’s price dropped more than 3% last week, marking a third consecutive week of decline for the digital coin. Bitcoin is now down more than 50% this year and remains 70% below its all-time high of $68,990.90 reached last November.
In addition to Fed Chair Powell’s latest comments, the cryptocurrency market continues to be harmed by the collapse of cryptocurrency exchanges and lending platforms, including Celsius and hedge fund Three Arrows Capital.
