Sharp drop in Bitcoin: At a 6-week low
Bitcoin is trading near its lowest levels in six weeks. Investors' cautious moves ahead of Fed decisions and uncertainty in the markets have accelerated the cryptocurrency's loss of value.
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The leading cryptocurrency Bitcoin is trading at around the 113 thousand dollar level in the final days of August, following fluctuations in recent weeks. This figure stands out as one of the lowest levels the cryptocurrency has recorded in six weeks.
At the root of the pullback in the markets is the tendency of investors to move away from risky assets ahead of the Fed's Jackson Hole symposium. US producer inflation coming in above expectations and strong retail sales data have reduced expectations for aggressive expansionary policies by the Fed, bringing about a search for direction in cryptocurrencies. This process has also once again highlighted Bitcoin's correlation with technology stocks.
On the other hand, news that the Securities and Exchange Commission (SEC) has launched an investigation into allegations of potential fraud and stock manipulation at Alt5 Sigma has increased selling pressure. This development has further triggered a risk-aversion trend in speculative markets.
Bitcoin had recently climbed to record levels under the influence of institutional investor inflows and positive signals from the regulatory front. However, this rise was not permanent. The cryptocurrency has lost more than 2% of its value since last week, giving back its monthly gains.