The cryptocurrency market reacted negatively to the statements of the chairman of the US Federal Reserve System (FRS) Jerome Powell. On Friday, August 26, 2022, the head of the organization assured that in order to control the inflation of the US dollar (USD), the Central Bank of the country would have to keep interest rates at a high level. The capitalization of all projects in the industry fell by more than 5%. Now this figure is below $1 trillion.
Cryptocurrency rates immediately began to fall after these comments. All leading digital assets have significantly lost value over the past day. For example, Bitcoin (BTC) fell to $20,275 as of 11:20 am Moscow time on August 27, 2022. This is 5.47% lower than similar values 24 hours ago. The total supply of coins dropped to $387.37 billion. Traders were very active in the market and closed many trades. The volume of exchange transactions rose to $43.93 billion per day.
The second cryptocurrency Ethereum (ETH) also fell significantly in price. She lost almost 10% of her value a day ago. The course of the coin was at around $1506.5, which is 9.18% lower than yesterday’s figures. The market capitalization of the asset was $183.49 billion, and the trading volume was $27.26 billion.
Among the top 10 cryptocurrencies by the size of the total supply of coins, Cardano (ADA) has lost a lot of value. Its rate fell to $0.44, which is 8.6% less than a day ago. The total capitalization was $14.8 billion.
Experts noted that a similar reaction was recorded in the traditional stock market, where all the world’s leading financial indices fell. Crypto industry analyst Lark Davis noted that the Fed is unlikely to change course in the foreseeable future, and therefore the markets will suffer more than once after the statements of Chairman Powell.