As the Federal Reserve (hereinafter referred to as the Fed) hesitates to lower interest rates, the prices of virtual assets are also falling sharply.
As of 7:57 a.m. on the 22nd, Bitcoin is trading at $112,474, down 1.87% compared to 24 hours ago, according to global coin market tracking site CoinMarketCap. At the same time, Ethereum is down 2.74% at $4,251. Ripple (XRP) is trading at $2.87, a 3.23% decline.
The drop on that day is analyzed to be a result of local Fed presidents expressing skeptical reactions about interest rate cuts as the Jackson Hole meeting began in Wyoming.
Jeffrey Schmid, president of the Kansas City Fed, noted in an interview with U.S. economic media CNBC that "There must be very compelling data to move the policy rate," and added, "There is much that needs to be mentioned between now and September."
Schmid's comments, as a voting member of the Federal Open Market Committee (FOMC) this year, are interpreted to mean that unless indicators that would warrant a rate cut in inflation or employment markets emerge before the FOMC meeting next month, a rate cut will not be easy.