Crypto Market Cap Plummets Below $900 Billion: Impact of Jerome Powell's Speech

Cryptocurrency Market Cap Drops Below $900 Billion

The cryptocurrency market has experienced a sharp decline, with its total market capitalization falling below $900 billion for the first time since February 2021. According to recent data, the total value of circulating cryptocurrencies stands at approximately $899 billion. This downturn follows a period of heightened volatility in the market, which has struggled to recover since Federal Reserve Chair Jerome Powell's speech at the Jackson Hole economic symposium.

Impact of Jerome Powell's Speech

Jerome Powell's remarks at the Jackson Hole summit have been widely cited as a key factor in the market's downturn. Powell's speech emphasized the Federal Reserve's commitment to combating inflation, which has led to increased uncertainty in both traditional and cryptocurrency markets. On the same day as the speech, major US indices such as the Nasdaq and S&P 500 experienced declines of 3.9% and 3.4%, respectively.

Bitcoin and Ethereum Prices Plummet

Bitcoin (BTC) has been particularly hard hit, suffering a 20% drop last Monday, reaching lows of $21,800 on some exchanges. As of the latest update, BTC is trading at $18,445, representing a 16.9% decline over the past week and an 8% drop in the last 24 hours. Ethereum (ETH), which recently garnered attention due to the Merge, has also seen significant losses. ETH is currently trading at $1,294, down 26% over the past week and 11% in the last 24 hours. These price movements have defied expectations, particularly for Ethereum, following the highly anticipated Merge event.

Performance of Other Cryptocurrencies

Other major cryptocurrencies have also experienced significant declines. Binance Coin (BNB) is trading at $258.5, down 12.8% over the past week and 6.8% in the last 24 hours. Stablecoins such as Tether (USDT) and USD Coin (USDC) continue to hold the 3rd and 4th positions, respectively, while BNB remains in 5th place. Other notable cryptocurrencies, including XRP, Cardano (ADA), Solana (SOL), and Dogecoin (DOGE), are ranked 6th through 10th, respectively, at the time of writing.

The cryptocurrency market's recent downturn highlights the ongoing challenges and volatility faced by digital assets. Investors are closely monitoring developments as the market seeks to recover from this significant drop in value.