Bitcoin: BTC/USD Tumbles, Dollar Regains Momentum after Federal Reserve Summit

The value of bitcoin declined sharply Saturday, as markets recoiled after hawkish comments by top Federal Reserve officials fueled fresh rate-hike worries.

The BTC/USD exchange rate was down 1.9% at $567.27 by midday, according to CoinDesk. Bitcoin was trading near session lows, having declined immediately after today’s open. The digital currency’s market capitalization currently stands at $8.95 billion.


The US dollar rebounded sharply on Friday, climbing 0.8% against a basket of fiat currencies to close at its highest level in two weeks. Traders piled into the greenback after Federal Reserve Chair Janet Yellen told the Jackson Hole Symposium that the case for raising interest rates had strengthened.

Fed Vice Chair Stanley Fischer was much more hawkish, indicating that the Fed could raise rates as early as September should the jobs data continue to show signs of improvement. The Labor Department will issue its August nonfarm payrolls report Friday, September 2.

Bitcoin’s price has plunged some 13% over the past month, wiping billions off the digital currency’s overall market capitalization. The month-long skid was triggered after hackers stole nearly 120,000 bitcoins from Hong Kong-based digital currency exchange Bitfinex. The security breach cost the

Read more ... source: TheBitcoinNews