'Worst In History'—Bitcoin Suddenly Hurtling Toward A $1.9 Trillion Shock After Huge Price Crash
What caused Bitcoin's sudden price crash this week?
Bitcoin's sudden price crash this week was caused by a combination of factors, including profit-taking ahead of the SEC's decision on spot Bitcoin ETFs, uncertainty in the broader financial markets, and the potential impact of the U.S. budget deficit on the crypto market. The crash resulted in the liquidation of over $595 million in crypto long positions in the past 24 hours.
How has the bitcoin price reacted to Mt. Gox's recent actions?
The bitcoin price has experienced a decline of 8% in the past two days, partly due to Mt. Gox's recent actions. The defunct crypto exchange has begun repaying creditors in bitcoin, leading to concerns of potential selling pressure. This, along with government wallet sales, has contributed to bitcoin trading at its lowest level since February.
What did Jerome Powell warn about concerning the U.S. economy?
Federal Reserve Chair Jerome Powell warned about a "critical period" for the U.S. economy, as inflation slows after higher readings earlier this year. He emphasized the need for more evidence of sustainable inflation slowdown before loosening policy. Powell also acknowledged the challenges of balancing rate cuts to avoid recession risks and prevent inflation from re-accelerating.