$300B Crypto Wipeout: Markets Reel as BTC Plunges Below $110K Post-Powell Speech - Weekly Recap
Crypto markets hemorrhage value as Powell's hawkish tone triggers massive sell-off.
The Powell Effect Hits Digital Assets
Federal Reserve Chair Jerome Powell's latest remarks sent shockwaves through cryptocurrency markets, wiping a staggering $300 billion from total market capitalization in mere days. Bitcoin led the decline, breaking below the critical $110,000 support level that traders had been watching closely.
Market Mechanics Unraveled
Leveraged positions unraveled at lightning speed as volatility spiked. The cascade of liquidations amplified the downward momentum, creating the perfect storm for bears to take control. Trading volumes surged to yearly highs as panic selling gripped both retail and institutional participants.
Traditional Finance Shows Its Teeth
The correlation between crypto and traditional markets reappeared with vengeance. When Powell speaks, apparently everyone listens—even the decentralized finance crowd. Another reminder that when Wall Street sneezes, crypto still catches a cold, despite all the talk about being an uncorrelated asset class.
Market veterans see this as a healthy correction rather than a trend reversal. The dip buyers are already circling, waiting for blood in the water. Because in crypto, what goes down must come up—until the next Fed meeting, anyway.
Market Data
Weekly Market Overview: Source: QuantifyCrypto
Market Cap: $3.840T | 24H Vol: $238B | BTC Dominance: 56.8%
BTC: $109,200 (-6.2%) | ETH: $3,920 (-13%) | XRP: $2.75 (-9%)
This Week’s Crypto Headlines You Can’t Miss
. The company behind the world’s largest stablecoin reaffirmed its dominance in the crypto market by securing somewhere between $15 and $20 billion, according to a recent report, for a 3% stake. This means that its valuation is roughly $500 billion, which is a lot more than its closest rival, Circle ($30 billion).
After losing roughly ten grand since last Thursday’s peak, the sentiment has expectedly turned grim. The popular Fear and Greed Index plunged to its lowest level in roughly 5 months as a result.
. FTX’s notorious former leader made a simple but loud comeback to social media this week, posting a minor “gm” message on X. It had a dramatic impact on FTT’s price and also led to some speculations about a Solana-based perp dex.
. BTC’s substantial correction gave perma-bears like Peter Schiff wings to make bold assumptions. The bitcoin critic believes this is not a minor retracement but the start of a bear market.
. As promised before, here’s some news about Hyperliquid’s competitor, which has reportedly surpassed it in terms of volumes. The meteoric rise of ASTER and its native token helped one whale turn a $300,000 investment into a $7 million fortune in just weeks.
. Let’s end the news portion with a more promising prediction in such dire times. Several crypto analysts outlined big bullish projections for October (often referred to as ‘Uptober’) that include a price surge to a new all-time high.
Charts
This week, we have a chart analysis of Ethereum, Ripple, Cardano, Binance Coin, and Hyperliquid – click here for the complete price analysis.
