Bitcoin initially showed little reaction to Powell’s remarks, but then nosedived sharply and on Sunday, it was hovering around $19,975 per digital coin which is more that 60 per cent drop in its value since last year when it reached a record-high of $68,000 in November.
Bitcoin prices had stabilised around the $23,000 to $24,000 level after plunging below $20,000 in June.
The prices of ethereum and other leading digital currencies have also rallied in the past two months, leading to hopes that this nascent market may have reached its bottom.
But the optimism could be premature, and fleeting. Companies with direct ties to the crypto landscape continue to struggle, according to media reports.
Bitcoin, despite the hype about it being digital gold, has turned out not to be an asset that performs well when inflation pressures are mounting and interest rates are spiking.
Reports last month suggested that Bitcoin may tumble to $10,000 this year.
A latest Bloomberg ‘MLIV Pulse survey’ revealed that the Bitcoin price is heading back to $10,000.
Shark Tank’s Kevin O’Leary has also stated that Bitcoin price has not hit bottom yet.
According to experts, the Bitcoin price will hit $10,000 before recovering to the $30,000 level.
Bitcoin has seen its worst-ever days in recent months amid the economic meltdown, leaving several crypto exchanges and trading platforms winding up operations, laying off people, and freezing fresh hirings.
The global cryptocurrency market lost at least $670 million in the April-June quarter (Q2), and 97 per cent of the losses were due to hacks and scams.