The Bitcoin (CRYPTO: BTC) price has fallen back below the psychologically important US$20,000 level.
The world's original crypto is currently trading for US$19,773 (AU$28,775).
That sees Bitcoin down 2% over the past 24 hours, 8% since this time last week, and down a painful 59% year-to-date, according to data from CoinMarketCap.
And it's not just the Bitcoin price in retreat.
Ethereum (CRYPTO: ETH), the world's number two crypto by market cap, is trading for US$1,448, also down 2% today and 10% over the past week.
Image source: Getty Images
Why is the Bitcoin price dropping?
Bitcoin, and indeed the vast majority of top cryptos, have all lost significant ground since US Fed chair Jerome Powell addressed his fellow global central bankers at the Jackson Hole financial summit in Wyoming. Powell made his speech on Friday morning (Friday night Aussie time).
In the lead-up to the Fed chair's speech, the Bitcoin price was trading for US$21,761.
Investors hoping to hear the world's most influential central bank might be approaching the end of its tightening cycle were left wanting.
"Restoring price stability will likely require maintaining a restrictive policy stance for some time," Powell said. "The historical record cautions strongly against prematurely loosening policy."
Powell said that "higher interest rates, slower growth, and softer labour market conditions will bring down inflation", adding that "they will also bring some pain to households and businesses".
Crypto investors watching the Bitcoin price dip back below US$20,000 will be feeling some of that pain today as risk assets have sold off across the board.
On Friday, the NASDAQ closed down 3.9%. And so far in 2022, cryptos have moved in line with growth shares.
Could this be a buying opportunity?
However, not everyone is bearish following the latest retrace in the Bitcoin price.
Mark Newton, technical strategist at Fundstrat, believes the token's recent trading pattern presents a buying opportunity.
According to Newton (courtesy of Bloomberg):
Friday's break looks important and negative in the short run but should line up with buying opportunities into early September as cycles remain bullish and project higher prices into November 2022.
