The first cryptocurrency again fell below $20,000. The current fall was caused by Jerome Powell’s report, expectations of funds withdrawal from Mt.Gox, and concerns about a “red September.”
BTC started falling on Friday, August 26, right after the Fed Chairman Jerome Powell’s report. The official confirmed the regulator’s commitment to the strategy of curbing inflation by tightening economic policy. In response to such a statement, the stock and crypto markets plunged; the IMF economists had recently drawn attention to the rising correlation between both markets.
Immediately after the report, the S&P 500 dropped 2.2%, and the U.S. stock market lost about $1.25 trillion by the end of the trading session. Bitcoin fell by $1,000, and the total cap of the cryptocurrency market dipped below $1 trillion.
Rumors about Mt.Gox releasing 137,000 BTC also put pressure on the first cryptocurrency’s value. These speculations were actively multiplying in the crypto segment of Twitter, although they had no solid basis, according to various analysts. The main argument behind this view was the reference to late August as the start date for payments in a document prepared by Nobuaki Kobayashi, who acts as an attorney in this matter.
A third factor is the expectation of a traditional “red September.” For instance, August 2022 shows the worst performance in seven years, but historically September has been even worse than August. Users have even dubbed it “Septembear.” You can see the price trend on Coinglass.
“Equities market in general isn’t looking good right now so this dip on BTC is a reflection on that,” trader Josh Rager stated the situation. According to traders, BTC’s next support zone is $19,200. If it is broken through, the next consolidation zone will be around $17,600.
As of 10:30 (GMT+3), BTC is at $19,845, while the cryptocurrency market cap is at $955.7 million, according to CoinMarketCap. Recall that the cryptocurrency market’s total capitalization in mid-July was below $900 million.
