Crypto Liquidation Hits $1 Trillion After Powell Speech

Federal Reserve Chair Jerome Powell's ambiguous stance on inflation targeting has sent shockwaves through global markets. Days after reaffirming a hawkish position, Powell hinted at abandoning the 2% inflation benchmark during the Jackson Hole symposium—triggering a $1 trillion crypto market liquidation.

The Fed's policy whiplash follows conflicting economic signals. While inflation climbed from 2.9% to 3.1% in July, unemployment trends now threaten labor market stability. Powell described conditions as a "middle ground"—too fragile for confidence, yet insufficient to warrant immediate intervention.

Market reaction was swift and severe. Traders interpreted the sudden dovish tilt as either strategic evolution or institutional panic. The crypto sector bore immediate brunt, with Leveraged positions unwinding across major assets. This volatility underscores the market's hypersensitivity to monetary policy signals amid ongoing macroeconomic uncertainty.