Bitcoin , the world's biggest and best-known cryptocurrency, was last down 1.5% at $19,946 on Saturday, down $298 from its previous close.
It is down 58.7% from the year's high of $48,234 hit on March 28.
The sharp decline in cryptocurrencies coincided with a big sell-off in U.S. stocks, triggered by Fed Chairman Jerome Powell’s a stern commitment to halting inflation in a speech in Jackson Hole, Wyoming.
The Dow Jones Industrial Average shed 1,000 points Friday after Powell said he expects the central bank to continue raising interest rates in a way that will cause “some pain” to the U.S. economy. Stocks sold off again on Monday.
Low interest rates and government stimulus during the Covid-19 pandemic fueled skyrocketing cryptocurrency prices, but they’ve fallen substantially in recent months
The $20,000 level acted as support for Bitcoin when it hit lows in recent months, but the cryptocurrency had worked its way higher in recent weeks. Before Saturday, it hadn’t been below $20,000 since July 14, and had even crossed above $25,000 earlier in August.
These declines seem to be triggered by remarks from the US Federal Reserve Chair – Jerome Powell. Powell mentioned that Friday’s Fed will lead to an increase in the interest rates in a subsequent effort to clamp down the inflation.