Crypto Market Cap Plummets $100B on Hawkish Fed Outlook
The total cryptocurrency market capitalization dropped by $100 billion after the U.S. Federal Reserve delivered cautious guidance on inflation, triggering a market-wide sell-off. Bitcoin led the decline, falling 5% as investors digested the central bank's updated economic projections. Fed Chair Jerome Powell noted that rising oil prices influenced the decision to lift the 2024 inflation forecast to 2.7% from 2.4%, fueling investor anxiety over prolonged tight monetary policy. The risk-off sentiment spilled into traditional markets, with the Nasdaq Composite index falling 1.5% to close at its session low.
Bitcoin Rejects $76,000 Resistance, Slides Below $71,000
Bitcoin's price failed to sustain its upward momentum, facing a firm rejection at the key resistance level between $75,000 and $76,000. The asset's price retreated to $71,622 before sliding further to $70,900 in the hours following the Fed's announcement. The pullback was accompanied by signs of increasing selling pressure, as on-chain data showed a rise in Bitcoin moving onto exchanges. Derivatives markets also signaled a shift toward more defensive positioning, with futures open interest flattening as traders reduced risk exposure and took profits.
Ethereum and Chainlink Drop Over 6% as Selling Broadens
The sell-off extended across the digital asset ecosystem, with major altcoins experiencing significant declines. Ethereum nosedived by 6%, with its price falling to $2,181. Similarly, Chainlink (LINK) plunged 6.6% to $9.20, breaking below its crucial daily support level of $9.50. The widespread declines underscore a broader de-risking trend, as hotter-than-expected inflation data and geopolitical tensions related to the conflict in Iran prompt investors to shed exposure to speculative assets until a clearer macroeconomic picture emerges.
Edgen Crypto·Mar 19 2026, 02:13
