Bitcoin Slips After Powell’s Jackson Hole Speech, Crypto Market Cap Slips Back Below $1 Trillion

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Bitcoin (BTC-USD), Ethereum (ETH-USD) and other major cryptocurrencies sold off on Friday afternoon as they traded risk-free on a broad day after the Federal Reserve’s Jerome Powell delivered a hawkish keynote earlier in Jackson Hole .

Bitcoin (BTC-USD) is down 4.3% to $20.60K, the lowest level since mid-July at 2:35 p.m. ET, and Ether (ETH USD) fell 9.2% to $1.54 000.SHIB USD) -7.3%Aether Classic (ETC USD) -7.2%Uniswap (UNI USD) -9.8% and avalanche (AVAX USD) -6.1% were among the biggest losers in the top 20 largest cryptos by market cap.

Overall, the global crypto market cap broke below $1 trillion, according to CoinMarketCap data, standing at $996.1 billion at the time of writing. The plunge in digital tokens came as stocks also took a hit, with the Dow Jones (DJI) -2.2%S&P 500 (SP500) -2.6% and Nasdaq (COMP.IND) -3.2%highlighting investors’ tightened tolerance for risky assets as the Fed pledges to keep raising interest rates until inflation falls in a meaningful way.

“Although not as compelling as a month ago, positioning in BTC and ETH remains long, giving an indication that the market believes the two are somewhat oversold,” wrote Andreas Steno Larsen, director and head of research at Heimstaden, in a Twitter post.

Larsen, who remains long bitcoin (BTC-USD) and ether (ETH-USD), added that ETH positioning is longer than BTC positioning, as the former last month ahead of their much-anticipated transition slightly outperformed Proof-of-Stake by Proof-of-Work as seen in this chart.

Crypto-related stocks fell broadly during the day: Riot Blockchain (RIOT) -8th%Marathon Digital (MARA) -11.7%HIVE blockchain (HIVE) -9.8%Bit Digital (BTBT) -10.3%MicroStrategy (MSTR) -8.1% and Coinbase Global (COIN) -6.4%.

Elsewhere in the cryptosphere, VGX tokens are extending the rally following the process of selling Voyager Digital assets. For more on the potential longer-term implications of Powell’s comments, see Why Mott Capital Says Speech Could Deal “Death Blow” to Markets.

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