Crypto markets take a hit ahead of key Federal Reserve address
According to Forkast, Bitcoin dipped to about $26,000 on Friday morning (Asia time), relinquishing much of the previous day’s gains, as investors awaited U.S. Federal Reserve Chair Jerome Powell’s speech at Jackson Hole. They’re seeking clues about a potential end to the rate hike cycle, which could have repercussions for the crypto market. Ether fell to roughly $1,600 support, and most other top 10 non-stablecoin cryptocurrencies faced losses. Solana was among the biggest losers after experiencing gains on Thursday, while the Forkast 500 NFT index saw a slight increase propelled by Solana blockchain’s recent collaboration with e-commerce platform Shopify, heralding promising developments for NFTs.
Crypto markets are experiencing an atmosphere of caution in the face of heightened regulatory scrutiny in the United States. The U.S. Securities and Exchange Commission (SEC) has filed lawsuits against various digital asset companies, including Ripple Labs, Binance.US, and Coinbase. Luxembourg-based crypto exchange, Bitstamp, announced Thursday the suspension of Ether staking services for US clients starting September 25 in light of recent regulatory developments. Market analysts believe negative sentiment in crypto markets could persist in the coming weeks until a clearer regulatory and legislative framework is established.