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Dogecoin (DOGE), Shiba Inu (SHIB), Cardano (ADA), Shiba Inu (SHIB) have taken a severe beating after Federal Reserve Chair Jerome Powell delivered a hawkish speech at the annual central banking summit that took place in Wyoming’s Jackson Hole valley earlier today.
The top cryptocurrencies gave up all of their recent gains, with market sentiment turning extremely bearish once again.
Bitcoin (BTC), the bellwether cryptocurrency, has plunged by more than 6% since Powell’s comments, dragging the rest of the cryptocurrency market lower.
Ethereum (ETH) is down 8% just a couple of weeks before it undergoes the much-hyped merge upgrade.
Powell said that the central bank had to retain its hawkish stance “for some time” in order to tame high inflation. This means that investors will not see a much-anticipated pivot from the central bank anytime soon.
Of course, cryptocurrencies moved lower together with U.S. stocks. The S&P 500 index shed more than 2% due to Powell’s remarks.
Some market observers seem to be getting increasingly frustrated with Bitcoin’s persistent correlation with U.S. stocks. “Crypto marching in lockstep with equities. Aren't you guys getting tired of this…yet?” veteran trader John Bollinger tweeted.
Bitcoin is down more than 70% from its record peak, with most top altcoins performing even worse than that.
After struggling to act as an inflation hedge, Bitcoin bulls have so far failed to come up with another bullish narrative.
Vladislav Sopov