Bitcoin battles with $20,000 amidst crypto negativity

As bitcoin struggles to hold $20,000, negativity continues to pervade the crypto space. 

Bitcoin is currently at $19,900, which could be construed as a confirmation of the break of $20,000. A further fall could be on the cards should the bulls not be able to push the price back above $20k by the end of the day.

Jackson Hole speech

A sharp 9% plunge was seen during the Fed Chair Jerome Powell’s speech at Jackson Hole on Friday, in which he came across as extremely hawkish, leading global stock markets to fall precipitously at a rate of $4.2 billion per second, resulting in $2 trillion being wiped from the markets.

This really could be the Fed trying to bring the markets down just by talking, which has generally had the desired effect thus far. The jaw-boning has led to the market factoring in a 75 basis point rise in September with a 66.5% probability. 

This has caused the bitcoin slide, and has resulted in the crypto Fear and Greed Index decreasing 4 points since Sunday, to enter into extreme fear territory once again.

Ava Labs furore

Another story that has broken recently and which has inspired some consternation in crypto circles is the alleged ‘secret pact’ which is claimed to be operating between Ava Labs and US law firm Roche Freedman LLP.

CEO of Ava Labs, Emin Gün Sirer, has labelled the claims as “conspiracy theory nonsense” in a tweet. 

When US stock markets open on Monday it remains to be seen which way stocks will go, and should it be to the downside, then bitcoin and the rest of the cryptocurrency market will have a further rocky ride to come.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.