Bitcoin falls to one-week low as boost from Fed Chair Powell’s rate cut fade

SINGAPORE: Bitcoin has just recorded its largest drop since early August, hitting a one-week low. The fall was part of a broader decline in digital assets, with major tokens such as Bitcoin and Ether seeing sharp price decreases.

According to The Edge Singapore, Bitcoin’s largest digital asset dropped more than 6% at one point, representing its steepest decline since the market’s dip on Aug 5. By 7:02 am on Wednesday, Singapore time, it had partially recovered, trading at US$59,400 (S$77,316.82).

Ether, the second-largest cryptocurrency by market value, also sharply declined, losing more than 7% before recovering slightly to trade at around US$2,463.

This decline in cryptocurrency prices follows a week of gains, primarily influenced by comments from US Federal Reserve Chair Jerome Powell.

Mr Powell’s remarks last week provided the clearest signal that the Federal Reserve might soon cut interest rates, which are currently at their highest levels in over two decades. Now, major tokens are losing those gains and falling back in value. /TISG

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