SOL - Why Ethereum Bitcoin and Solana Dropped on Saturday
The cryptocurrency market continues to trade closely with the stock market, and that has continued over the weekend. On Friday, Federal Reserve Chair Jerome Powell said that restrictive interest rate policies will continue until inflation is under control. That means interest rates will remain high and investors are selling risky assets as a result.
As of 1:30 p.m. ET, Ethereum (CRYPTO: ETH) had fallen 7.1% in the last 24 hours, Bitcoin (CRYPTO: BTC) was down 3.5%, and Solana (CRYPTO: SOL) had fallen 5.7%. Most of the drop occurred on Friday or early Saturday, and the market had settled down by midday Saturday.
Powell is at the Economic Symposium in Jackson Hole, Wyoming, an annual conference that is closely followed by investors. He wouldn't say if rates would rise 50 basis points or 75 basis points, but it was clear the focus is on getting inflation under control over keeping the economy growing.
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Why Ethereum, Bitcoin, and Solana Dropped on Saturday