US Stocks Lose $1.25 Billion in One Day, More Than Total Crypto Market Cap

Risk assets take a hit as Fed Chairman Jerome Powell remains staunchly hawkish on inflation and policy monetary.

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Bitcoin (BTC) and altcoins lost big on August 26 after the US Federal Reserve made hawkish remarks on economic policy.

Risk assets overall took a hit: US stocks lost around $1.25 trillion in a single session.

Analyst: Powell abandons 'soft landing' rhetoric

As comments from Fed Chairman Jerome Powell suggested bigger rate hikes were still on the table despite recent data indicating inflation was already slowing, investors rushed to reduce risk .

“Restoring price stability will likely require tight policy to continue for some time. Jackson Hole.

The S&P 500 closed down 3.4% on the day, hitting its lowest levels since late July. The Nasdaq Composite Index copied the move and extended losses, shedding 4%.

Overall, the US stock market has lost more value than the entire market capitalization of Bitcoin and altcoins combined.

The total market capitalization of crypto itself fell from $1.029 trillion to $936.87 billion at some point overnight, representing a decline of 8.95%, according to data from Cointelegraph Markets Pro and TradingView.

Graph of Total Cryptocurrency Market Cap on 1 day . Source: TradingView

While some argued that Powell's remarks were not the critical area to consider in terms of future Fed policy, others noted that previous narratives were slowly being abandoned regarding the outlook for inflation.

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