Bitcoin, the world’s largest cryptocurrency by market value, dropped just below the $26,000 mark on Wednesday after trading in a tight range over the past 24 hours and hitting a weekly low of $25,500.
The cryptocurrency rebounded slightly from the low but remains down 9% over the last seven days as markets await developments from the central bankers’ meeting at Jackson Hole on Friday. “It is possible that any semblance of dovishness from Jay Powell on Friday could help inspire a recovery. Beyond that, we also have a potential ruling in the Grayscale case to look forward to,” Sean Farrell, head of digital asset strategy at Fundstrat, wrote in a note. Farrell said he thinks the market is closer to a local bottom rather than top, given the absence of industry-specific catalysts and a decline in liquidity.