Almost all cryptocurrencies fell by 5% on Saturday night

The cryptocurrency market has reacted negatively to the statement by US Federal Reserve Chairman Jerome Powell. On Friday, the head of the organization said that in order to control the inflation of the US dollar, the country’s central bank will have to keep interest rates high.

The capitalization of all projects in the industry has fallen by more than 5%. This figure is now below $ 1 trillion. Cryptocurrency rates immediately began to fall after these comments. All the leading digital assets lost significantly in value over the past day. For example, bitcoin (BTC) fell to $ 20,000 and even briefly traded below this value.

The world’s second largest cryptocurrency, ethereum (ETH), also fell significantly. It lost almost 10% of its value a day ago.

Experts noted that a similar reaction was recorded in the traditional stock market, where all the world’s leading financial indices fell. Crypto industry analyst Lark Davis noted that the Fed is unlikely to change its course in the near future, and therefore the markets will suffer seriously again after the news from Powell.