Cryptocurrency Market Loses $120B Anticipating Friday's Federal Reserve Speech

Approximately $120 billion was wiped off the cryptocurrency markets in the last 24 hours, bringing the total capitalization to a two-week low of $3.86 trillion, amid fears over the upcoming speech by Federal Reserve Chair, Jerome Powell. Bitcoin and Ethereum both saw significant losses, with Bitcoin dropping to its lowest level in 17 days. The market is bracing for a potentially hawkish tone from Powell, which could suggest that rate cuts are no longer guaranteed for September.

However, there is still an 85% probability of a cut according to the CME Fed Watch Tool. Crypto sentiment remains highly volatile, with the recent dip causing a switch to bearish sentiment among retail traders. The next direction for the market is largely dependent on the outcome of Friday's Fed speech.