Bitcoin Plummets by Almost $10,000 in One Hour as Jerome Powell Turns Hawkish

The world’s largest cryptocurrency was sent sharply plummeting on Saturday, as turbulence from both the Omicron virus and the Federal Reserve’s about-face on inflation send crypto markets downward.

The price of bitcoin fell by as much as $10,000 in one hour to a low of $42,000 before paring back some losses, marking the latest downtrend since the emergence of the Omicron Covid-19 strain. In the past 24 hours alone, bitcoin slumped 16.14% day-over-day, to a combined loss of 31.6% from the year’s high of $69,000 on November 10.

In the meantime, Ether, the world’s second largest cryptocurrency, was down by nearly 14% to around $4,200, as both cryptocurrencies undergo a sell-off amid the emergence of the Omicron strain. However, the latest decline has also been attributed to the Fed Chair Jerome Powell’s sudden retirement of using the word “transitory” to describe the current inflationary landscape. On Tuesday, Powell announced that it is time for the central bank to accelerate the abatement of asset purchases sooner than previously forecast, as prices soar to a 30-year high.

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Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.