Bitcoin drops below $20,000

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Cryptocurrencies mirrored global markets and fell after US Federal Reserve Chairman Jerome Powell warned on Friday that he would not stop tightening interest rates, with Bitcoin falling back below $20,000 after the news, Bloomberg writes.

The biggest cryptocurrency by market lost as much as 3.4 percent to $19,947.32 at 2:40 p.m. in Singapore on Saturday, falling below $20,000 for the first time since July 14 and extending its decline from this year to 57%. Over the past week, it has traded in a range between this level and around $22,000.

Ether fell as much as 5.5% to $1,471.41. Solana and Avalanche fared worse, falling 6.4% and 6.9%.

Even so, some analysts say the recent trading pattern represents a buying opportunity.

Powell, the chairman of the Federal Reserve, has signaled that the US central bank is likely to keep raising interest rates and leave them high for a while to stamp out inflation, and dismissed any idea that the Fed would soon reverse course. Low rates are seen as one of the catalysts that pushed investors towards crypto during the Covid lockdowns.