Powell hinted in his speech that the central bank is almost certain to start cutting interest rates in September. Historically, lower interest rates have benefited cryptocurrencies because they are thought to offer better returns than safer investments like government bonds. Bitcoin’s price initially rose after Powell’s comments but has since erased all of those gains.

The recent decline in Bitcoin’s price could also be attributed to a lack of trading volume, a common occurrence in late August when markets typically slow down, according to FxPro analyst Alex Kuptsikevich. “The market appears to have been largely dragged down by automatic stop orders during light trading hours,” Kuptsikevich wrote in a research note.

“Such sell-offs typically push out leveraged investors but can also attract long-term buyers looking to buy at lower prices.”