The cryptocurrency market has faced significant pressure over the past 24 hours, losing around $120 billion. This decline in market capitalization is linked to the anticipation of the upcoming speech by Fed Chairman Jerome Powell.
Crypto Market Hits New Lows
The total cryptocurrency market capitalization stands at $3.86 trillion, marking the lowest level in two weeks. Bitcoin has fallen below $113,000, reaching a 17-day low, while Ethereum dipped below $4,100, erasing all gains from the previous week.
Expectations from Jerome Powell's Speech
The market is preparing for a speech by Fed Chairman Jerome Powell in Jackson Hole, awaiting confirmation or denial of potential rate cuts. According to Bitcoin author Jason Williams, the market is "essentially pricing in a hawkish tone." If Powell hints that no rate cuts will be forthcoming, bearish sentiment is likely to persist.
Market Sentiment
Sentiment within the cryptocurrency space remains volatile. Bitcoin Magazine founder David Bailey observed that trader sentiment can change rapidly. Recent data from Santiment indicates that retail traders have shifted to a much more bearish mindset after Bitcoin dipped below $113,000, marking the highest level of bearish sentiment on social media since late June.
The situation in the cryptocurrency market remains uncertain, and many investors are looking for clarity following Jerome Powell's upcoming speech on Friday, which could impact future price movements.
