- In the United States alone, stocks lost around $1.25 trillion in a single day.
- With a 3.4% loss at day’s end, the S&P 500 reached its lowest point since late July.
The United States Federal Reserve offered aggressive views on economic policy on August 26, sending Bitcoin (BTC) and other cryptocurrencies down. In the United States alone, stocks lost around $1.25 trillion in a single day, and this was a global trend across all risk assets.
Investors hurried to avoid risk as remarks from Fed Chair Jerome Powell indicated that more rate rises were still on the table despite recent data indicating inflation was already slowing.
Powell stated:
“Restoring price stability will likely require maintaining a restrictive policy stance for some time. The historical record cautions strongly against prematurely loosening policy.”
Looming Inflation
With a 3.4% loss at day’s end, the S&P 500 reached its lowest point since late July. The technology-focused Nasdaq Composite Index fell by the same amount (4%), reflecting the broader market trend. The total value of Bitcoin and altcoins combined lost less than what was lost on the U.S. stock market.
Data from TradingView shows that overnight, the entire market capitalization of all cryptocurrencies dropped from $1.029 trillion to $936.87 billion, a decrease of 8.95%.
It was noticed that earlier narratives were being abandoned with regards to the inflation forecast, while others stated that Powell’s statements were not the crucial area to examine in terms of future Fed policy. However, crypto investors were hit hard by the selloff in risk assets.
According to CMC, the global crypto market cap is $963.09B, a 3.19% decrease over the last day. The total crypto market volume over the last 24 hours is $68.21B, which makes a 21.79% decrease.
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