On Saturday, August 27, Bitcoin prices failed at $20,000 and tested a range around $19,900 (on the Binance exchange). Ethereum price dropped below $1470.

At the time of writing, the first asset is trading around $20,120 while the second is trading at $1,485.

According to Coinglass, liquidations in the futures market in the past 24 hours exceeded $382 million, of which more than $167 million came from Ethereum. It basically replaces forcibly closed short positions.

Earlier, Jerome Powell, head of the US Federal Reserve System (FRS), said that to control inflation, the central bank should keep interest rates high for a while.

Digital assets reacted negatively to the Fed chairman’s words. The traditional stock market had a similar reaction, with the Nasdaq index dropping almost 4%, the biggest intraday drop since the end of June 2022, for example.

Crypto investor and blogger Lark Davis noted that the Fed will not change its position in the near future and therefore markets will suffer even more.

The Fed isn’t coming back anytime soon. There will be more pain in the markets. #bitcoins #crypto #stocks

— Lark Davis (@TheCryptoLark) 27 August 2022

Economist Alex Krueger expressed a similar view. According to him, the Fed prefers to plunge the economy into recession rather than allow hyperinflation. The expert advised users to hedge positions and revalue them.

PA was a two-way mess. Bears win, in place of v-reversal, downtrend $BTC chart, next weekend, Sunday was time to hedge and reassess.

— Alex Kruger (@krugermacro) 26 August 2022

Recall that Peter Schiff, head of Euro Pacific Capital, predicted that Bitcoin would drop to $10,000.

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