Crypto traders are exercising caution as Bitcoin and other cryptocurrencies suffered losses following Federal Reserve Chairman Jerome Powell’s remarks at the Jackson Hole symposium on Friday. Powell’s speech left the door open for potential interest-rate increases, leaving the market uncertain about the future of the Fed’s interest-rate hiking cycle.
On Monday, Bitcoin was trading at $25,922, marking a 0.5% decline over the last 24 hours. The weekend’s gains, which had kept the price above $26,000, were surrendered after choppy trading immediately following Powell’s speech. Despite this, Bitcoin has maintained a range around $26,000 since the previous month’s selloff caused a temporary decline below $25,500.
According to market analyst Javier Molina from eToro, investors should closely monitor the $25,000 level. If this level proves strong, the target is to reclaim $27,000 as a first step, followed by the crucial zone of $28,500. Successful breakthroughs in these levels may lead to a direct climb to $31,000. Conversely, breaking through $25,000 paves the way for a further decline to $23,800 and potentially $21,500.
Apart from Bitcoin, other cryptocurrencies also experienced losses. Ether, the second-largest crypto, fell by 0.9% to $1,634. Altcoins such as Cardano declined by 1.7%, Solana dropped by 1.8%, and even Dogecoin saw a 1.7% decrease.
