BTC, ETH Lower as Powell Claims There Are ‘Structural Issues’ With Cryptocurrency – Market Updates

Bitcoin was back in the red on Wednesday as Federal Reserve Chair Jerome Powell called for more regulation in decentralized finance (defi), citing “structural issues” as the main reason. The token fell below $19,000 in the comments, moving closer to a key support point. Ethereum also slipped after yesterday’s rally, with the price dipping back below $1,300.

Bitcoin

Bitcoin (BTC) was back in the red on Wednesday as markets reacted to comments from Federal Reserve Chairman Jerome Powell.

On Tuesday night, Powell stated that more regulation was needed in the crypto market, with recent price declines highlighting “structural issues.”

In his comments, Powell said of the current relationship between Defi and traditional finance, “Ultimately, this is not a stable equilibrium and we have to be very careful … how crypto activity is treated within the regulatory perimeter.”

BTC/USD daily chart

Following the comments, BTC/USD slipped to an intraday low of $18,553.30 at the start of the session, less than a day after hitting a high of $20,338.46.

As a result of today’s sell-off, bitcoin approached its key support point of $18,300. However, the bulls have reacted and pushed the price away from this level.

Currently, BTC is trading at $18,976.35 as traders appear to have closed previous shorts, giving way to some bullish sentiment.

ether

Bitcoin wasn’t the only token affected by Powell’s comments, as Ethereum (ETH) also traded lower in today’s session.

The world’s second-largest cryptocurrency fell to an intraday low of $1,267.87 on Wednesday, hitting a one-week low.

After a series of bearish sessions over the past two weeks, ETH/USD has recently entered the consolidation area.

ETH/USD daily chart

As can be seen from the chart, it was between a support point of $1,230 and a resistance level of $1,300.

It appears that this sideways movement has helped contain a high level of bearish momentum, with the 10-day moving average (red) appearing to have found a bottom.

If that is the case, it is likely that we will see further consolidation in the coming weeks, with the potential for a rally sometime in October.

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Elijah Dambell

Eliman brings an eclectic perspective to market analysis, having previously been a broker director and retail educator. He currently acts as a commentator for various asset classes including crypto, stocks and forex.

Photo credits: Shutterstock, Pixabay, Wiki Commons

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