Cryptocurrencies mirrored global markets and declined after Jerome Powell warned against prematurely loosening policy, with Bitcoin settling into the lower end of the narrow range that it has traded in the past two weeks.
“Powell’s admission that there will be pain before there is relief is rather hawkish,” said Josh Olszewicz, head of research at digital asset fund manager Valkyrie Investments.
The largest cryptocurrency by market slumped as much as 4.9% to $20,579 in New York, putting it on pace for a second consecutive weekly loss. It has traded in a range of around $22,000 to $20,000 since last Friday. Ether fell for the first time in four trading sessions, and was also lower for a second week. Solana and Avalanche fell more.
Even so, some analysts say that the recent trading patten presents a buying opportunity.
