Bitcoin fell as much as 4% on Thursday, sliding further from the key $50,000 level.- One analyst said bitcoin was struggling due to general market nerves ahead of a key speech from the Fed Chair.
- Its price has risen sharply since July, crossing $50,000 on Monday before pulling back again.
Bitcoin's price fell as much as 4.4% on Thursday as the world's biggest cryptocurrency slid further away from the $50,000 level reached on Monday.
The token then recovered some ground and traded at $46,990 at 7.35 a.m. ET, according to Bloomberg data, down 3.5% for the day.
On Monday, bitcoin rose above $50,000 for the first time since May after rebounding sharply from below $30,000 in July. The move excited pundits, who suggested it could trigger another leg higher.
But bitcoin has since lost ground, falling around 7% from its Monday high as of Thursday morning.
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Edward Moya, senior market analyst at Oanda, noted bitcoin had dropped ahead of a key speech from
"Bitcoin is struggling here as investors await to see if Fed Chair Powell delivers a hawkish surprise and helps drive Treasury yields, which dampens the appeal for risky assets," he said.
The biggest cryptocurrency has been a major beneficiary of the US's huge fiscal and monetary stimulus during the pandemic-driven economic crisis. Its price could slip if Powell reveals the central bank will soon start cutting back on its support.
"Regardless of what happens this week at Jackson Hole, many cryptocurrency traders are waiting to see if risk aversion returns and triggers a bitcoin buying opportunity," Moya said.