Bitcoin dips below $20,000

Agencies | Argentina

The Daily Tribune – www.newsofbahrain.com

Bitcoin dipped below $20,000, continuing a drop that has taken it down nearly 60% from its year high. Bitcoin, the world's biggest and best-known cryptocurrency, was last down 1.5% at $19,946, down $298 from its previous close.

It is down 58.7% from the year's high of $48,234 hit on March 28. Ether, the coin linked to the Ethereum blockchain network, meanwhile dipped 2.76 % to $1,467.2, losing $41.60 from its previous close, Reuters reported.

Bitcoin's fall comes after a weak day on Friday for the currency, which fell as Wall Street slumped with all three benchmarks ending more than 3% lower. The weakness in risk assets came after Federal Reserve Chief Jerome Powell cautioned against expecting a swift end to its rate tightening.

The Fed's actions on interest rates caused some investors to forecast more pain for equities. "Bitcoin broke below 20,000 as investors expect a weekend full of pessimism from Jackson Hole to drag down sentiment," Edward Moya, senior market analyst at OANDA.

"European and Asian central bankers will likely be much more pessimistic than Fed Chair Powell and that has many traders bracing for a weak open on Sunday night," he added. Bitcoin was last below $20,000 in mid-July.