Bitcoin and top cryptos are going down today, August 21, continuing a downtrend that has been going on this week. BTC dropped to $112,000, down by 10.15% from its highest point this year.
Similarly, top cryptocurrencies like Cardano (ADA), Shiba Inu (SHIB), and Pepe (PEPE) fell by over 5% today and are stuck in a technical bear market.
Jackson Hole Symposium
The crypto market crashed as investors waited for the upcoming speech by Jerome Powell at the Jackson Hole Symposium. This will be a key speech that will provide more signals on what to expect in the coming meeting.
Officials are mixed on what to expect in this meeting. Some of them, like Christopher Waller and Michele Bowman, believe that the bank should cut rates, noting that inflation is not rising as fast as expected.
Other officials like Beth Hammack and Lisa Cook have warned against cutting rates prematurely. In a statement at the event, Hammock, who is not voting this year, said:
“We have inflation that’s too high and has been trending upwards over the past year. With the information I have, if the meeting were tomorrow, I would not see a case for reducing interest rates.”
Bitcoin, altcoins, and the stock market tend to perform well when the Fed cuts interest rates. In a low-interest-rate environment, investors often rotate from the bond market to riskier assets like stocks and crypto.
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Crypto Going Down as Bitcoin Forms Risky Patterns
The ongoing crypto crash is happening as Bitcoin price forms risky patterns pointing to more downside. The chart above shows that Bitcoin has formed a shooting star candlestick, which is made up of a small body and a long upper shadow, and is often a bearish reversal sign.
Most importantly, Bitcoin has formed a wedge pattern on the weekly chart. This wedge has formed since March last year and is now nearing its confluence level. This means that BTC price may crash soon, inflicting pain in the broader crypto market.
BTC price chart | Source: TradingView
The crypto market is also going down as liquidations jump. Data shows that trades worth over $1 billion have been liquidated this week as some of the most popular cryptocurrencies fell.
Liquidations lead to selling pressure as long positions are closed. They also trigger voluntary panic selling among retail traders who sell to avoid further losses.
The crypto crash is also falling as market participants book profits after most of them surged a few weeks ago.
READ MORE: Here’s Why the Avalanche Crypto Price Could Surge to $40 Soon
