Bitcoin stumbles but recovers as Powell's comments rattle markets, Standard Chartered sees XRP soaring 500%

Bitcoin wavered but ultimately recovered following market turbulence triggered by Fed Chair Jerome Powell's remarks. Meanwhile, Standard Chartered made waves

Bitcoin wavered but ultimately recovered following market turbulence triggered by Fed Chair Jerome Powell’s remarks. Meanwhile, Standard Chartered made waves by predicting XRP could soar 500% by 2028.

>Coinbase warned of a potential crypto winter, citing a 41% drop in altcoin market cap. At a key roundtable, SEC officials hinted at a sweeping regulatory shakeup. Finally, MANTRA’s OM token plummeted 90% amid insider sell-off allegations.

Bitcoin stumbles but recovers as Powell's comments rattle markets

The cryptocurrency slid on Monday after a turbulent session that saw a rebound in the previous day as traders reacted to pessimistic comments by Federal Reserve Chairman Jerome Powell.

The crypto was trading at around $70,000 by 07:38 ET (11:38 GMT). Bitcoin had slid as low as $66,000 earlier in the session.

Bitcoin rebounded on Sunday after notching its lowest levels since early May as traders assessed the potential for a third round of U.S. stimulus and the outlook for the battered global economy.

The cryptocurrency slid after a report by the Institute for Fiscal Studies showed that the British government was planning to raise $42 billion by increasing taxes on food and fuel. The report also said that the government was planning to cut spending on welfare and healthcare.

The report comes as the British economy is struggling to recover from the coronavirus pandemic. The economy is expected to contract by 10% this year, and unemployment is set to rise to 8%.

The British government has already announced a $40 billion stimulus package, but economists say that more needs to be done to prevent a recession.

"The government needs to do more to support the economy and protect jobs," said Paul Johnson, director of the Institute for Fiscal Studies. "We are already seeing signs of a recession, and if the government doesn't act, we could be in for a very difficult winter."

The British government is also planning to increase taxes on food and fuel in order to raise $42 billion, according to a report by the Institute for Fiscal Studies.

The report, which was published on Monday, said that the government was planning to introduce a new tax on food and fuel, which would be collected at the point of sale. The tax would be set at a rate of 5%, and would be used to fund a new social care fund.

The report also said that the government was planning to cut spending on welfare and healthcare in order to reduce the budget deficit.

The report comes as the British economy is struggling to recover from the coronavirus pandemic. The economy is expected to contract by 10% this year, and unemployment is set to rise to 8%.

The British government has already announced a $40 billion stimulus package, but economists say that more needs to be done to prevent a recession.

"The government needs to do more to support the economy and protect jobs," said Paul Johnson, director of the Institute for Fiscal Studies. "We are already seeing signs of a recession, and if the government doesn't act, we could be in for a very difficult winter."

Bitcoin has been on a tear this year, rising more than 150% from its March lows. The cryptocurrency has been supported by the Federal Reserve's monetary stimulus measures, which have helped to boost risk appetite.

However, Bitcoin's gains have slowed in recent months as the outlook for the global economy has deteriorated. Economists polled by Dow Jones on Monday lowered their third-quarter GDP growth expectations for the U.S. to 28.0% from 30.0%.

Bitcoin is also facing headwinds from increased regulations in the cryptocurrency sector. The U.S. Securities and Exchange Commission (SEC) has been stepping up its scrutiny of cryptocurrency exchanges and initial coin offerings (ICOs).

Despite these challenges, Bitcoin remains a popular investment among retail and institutional investors. Some analysts believe that Bitcoin could rise to new highs of $100,000 or more in the coming years.

At a key roundtable, SEC officials hinted at a massive crypto trading overhaul as calls for federal regulation grew.

A standout moment in the conversation signaled a potential shift in the SEC's stance. Chairman Jay Clayton expressed openness to a more streamlined approach for blockchain startups seeking to register their tokens as securities.

"I think there are ways we can do it more efficiently," Clayton said, referring to the registration process.

His comments come in response to criticism from startups who find the current process lengthy and complex, impacting their ability to navigate the rapidly evolving crypto ecosystem.

Moreover, SEC officials acknowledged the urgent need for collaboration with other federal agencies to forge a comprehensive framework for crypto regulation.

"We need to work with other federal agencies to create a more holistic regulatory framework for crypto assets," said Commissioner Hester Peirce, known for her pro-crypto views.

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