Bitcoin reacts sharply to Fed Chair Jerome Powell’s speech

• Following Jerome Powell’s comments, Bitcoin’s price dropped sharply to $21,000 on Friday.
• S&P 500 fell 2%, following a similar reaction from Wall Street.
• Powell said in his Jackson Hole speech that the Fed would remain aggressive till the “job is done.”

Bitcoin (BTC/USD), which fell below $21,000 Friday afternoon, touched lows of $20,700 at time of writing.

The declines, which follow US Federal Reserve Chair Jerome Powell’s Jackson Hole speech, could see the cryptocurrency’s price retest support levels at $20,000 or lower.

Fed to Keep Raising Rates

The Jackson Hole symposium is an annual gathering of central bankers, economists, and other key policymakers. This event has been accompanied by increased market volatility due to highly anticipated commentary.

So, after Powell maintained a hawkish stance, reiterating that the central bank will raise interest rates “until the job is done” on inflation, both stocks and cryptocurrencies – risky assets – have dipped sharply.

S&P 500 is down 2 points. The Nasdaq has lost nearly 2.6%. And the Dow Jones Industrial Average has dropped more than 500 points or -1.6%.

Bitcoin price is down nearly 4% and looks vulnerable to new losses to the main support level at $20K, which analysts see as very important to bulls’s short term plans.