cryptocurrency

US stock market stumbles after aggressive Federal Reserve opinions

  • In the US alone, stocks lost about $1.25 trillion in a single day.
  • With a 3.4% loss at the end of the day, the S&P 500 reached its lowest level since late July.

United State Federal Reserve It offered aggressive views on economic policy on August 26, which sent bitcoin (BTC) and other cryptocurrencies down. In the US alone, stocks lost about $1.25 trillion in one day, and this was a global trend across all risky assets.

Investors were quick to avoid risk as comments from the Federal Reserve chief Jerome Powell He indicated that further rate hikes are still on the table despite recent data indicating that inflation was indeed slowing.

Powell said:

Restoring price stability will likely require maintaining a restrained political position for some time. The historical record strongly cautions against premature mitigation.”

Inflation looms

With a 3.4% loss at the end of the day, the S&P 500 reached its lowest level since late July. The technology-focused Nasdaq Composite is down the same amount (4%), reflecting the broader market trend. The combined value of Bitcoin and altcoins lost less than they lost in the US stock market.

Data from TradingView shows that overnight, the entire market capitalization of all cryptocurrencies fell from $1.029 trillion to $936.87 billion, a decrease of 8.95%.

It was noted that previous narratives regarding inflation expectations have been abandoned, while others have stated that Powell’s comments were not the critical area of ​​scrutiny regarding future Fed policy. However, cryptocurrency investors were hit hard by the sale of risky assets.

according to CMCThe global cryptocurrency market capitalization is $963.09 billion, down 3.19% from the previous day. The total size of the crypto market over the past 24 hours is $68.21 billion, which is a decrease of 21.79%.

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