Crypto Market Faces $600B Weekly Dip Amid Fed Rate Hike and Investor Concerns

The cryptocurrency market lost $200B in 24 hours and $600B this week due to Federal Reserve rate hikes and cautious comments, impacting major coins and traditional markets.

The cryptocurrency market has experienced a dramatic downturn, shedding over $200 billion in market capitalization within the past 24 hours and roughly $600 billion over the past week. This decline comes in the wake of a Federal Reserve rate cut of 25 basis points, paired with Chair Jerome Powell’s cautious outlook, suggesting fewer rate cuts in the near future.

Powell’s statements have dampened investor sentiment across the board, with traditional risk assets also taking a hit. The S&P 500 dropped 3.2%, and the Nasdaq suffered a similar decline. The Dow Jones Industrial Average continued its downward trajectory, marking nine consecutive losing sessions—the longest streak since 1974.

In the crypto space, Bitcoin saw its price plummet by over 9%, now trading below $93,000. Ethereum’s ether fell even harder, with a 15.6% drop to $3,120. Major altcoins, including Solana, Dogecoin, Cardano, and Binance Coin, faced losses ranging from 11.6% to 27%.

Adding to the bearish sentiment, Bitcoin spot ETFs recorded a record $671 million outflow, breaking a 15-day inflow streak. Fidelity’s FBTC fund led the outflows with $206.8 million, followed by Grayscale’s Bitcoin Mini Trust at $188.6 million, and ARKB at $108.4 million.

Market uncertainty has also been fueled by anticipation surrounding the release of the November Personal Consumption Expenditures (PCE) index, a key inflation indicator. Analysts expect the index to further shape future Federal Reserve interest rate policies, keeping both traditional and cryptocurrency markets on edge.

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