Crypto Crash: Powell's Hawkish Stance Sinks Bitcoin, Ethereum

The cryptocurrency market has experienced a significant crash, with Bitcoin, Ethereum, XRP, and Dogecoin prices plummeting. This downturn follows the testimony of Federal Reserve Chair Jerome Powell before the Senate Banking Committee, which was bearish for risk assets.

Powell's remarks indicated that the US Central Bank is in no hurry to adjust its current economic policy. He emphasized the need to make more progress on inflation before considering a policy pivot. These statements reinforced the hawkish stance of the US Central Bank, which is bearish for risk assets such as Bitcoin, Ethereum, XRP, and Dogecoin, as it suggests that interest rates are unlikely to be cut in the near future.

While Powell made some positive remarks, such as affirming the Central Bank's commitment to ending debanking and revealing that they have no plans to create a Central Bank Digital Currency (CBDC), these comments were not enough to prevent the crypto market crash. The Bitcoin price quickly dropped below the $97,000 support level and is at risk of falling below $95,000 at the time of writing.

The crypto market crash has been characterized by a wave of sell-offs, with investors reacting to Powell's hawkish speech. The decline in prices has been significant, with Bitcoin, Ethereum, XRP, and Dogecoin all experiencing substantial losses. This downturn serves as a reminder of the volatility and risk associated with investing in cryptocurrencies.