Jay Powell's message about potential rate cuts has lost its initial boost, as cryptocurrency prices have pulled back.
Ethereum topped the liquidations chart with over $100 million, including $93.52 million in liquidated long positions. Bitcoin came in next, with more than $94 million in liquidations, with $85.97 million from long positions and $8.87 million from short positions. Since reaching a record high of over $73,000 in March, Bitcoin has been volatile, with prices swinging between gains and losses each month.
The recent drop didn’t have a specific cause, aside from possible profit-taking after the optimistic remarks from Federal Reserve Chair Jerome Powell. Last week, Powell indicated at the Jackson Hole forum that interest rate cuts are anticipated in September. Although cryptocurrencies operate outside the traditional banking system, they aren’t entirely shielded from the effects of interest rate changes.