Gold and cryptocurrency respond differently: Powell releases hawkish statement, US stocks end in the red, ETH surges over 10%

Yesterday, Federal Reserve Chairman Powell turned hawkish, causing U.S. Treasury yields to rise and the U.S. stock market to end in the red across the board. The S&P 500 index finished with a steep decline of over 0.81%, ending a strong upward trend of over a week. Cryptocurrencies, on the other hand, showed an upward trend, particularly ETH, which surged past the $2,100 mark, driven by BlackRock's application for Ethereum spot ETH, with a 24-hour gain of over 10%.

Six major institutions are vying for Ethereum spot ETF! BlackRock joins the battle, pushing ETH above 2100.

Powell Turns Hawkish, U.S. Stocks Plunge Across the Board

Federal Reserve Chairman Powell delivered a speech at an event hosted by the International Monetary Fund yesterday, warning the Fed not to be "misled" by favorable inflation data, stating that there is still "a long way to go" to achieve the 2% inflation target.

"If further tightening is warranted, we will not hesitate to act."

Powell emphasized that the Fed will proceed cautiously to address the risks of being misled by several months of positive data and the risks of over-tightening.

U.S. stocks tumbled across the board in response to this hawkish rhetoric, ending a week of strong performance.

Markets Experience High Volatility, Over $400 Million Liquidated in 24 Hours

Meanwhile, the crypto market tells a different story, with Bitcoin on a month-long rise fueled by optimism surrounding the approval of a spot Bitcoin ETF. Ethereum also surged yesterday, breaking through $2,100 as BlackRock joined the Ethereum spot ETF battle.

According to data from Coinglass, the amount liquidated in the past 24 hours reached a staggering $447 million, with an equal ratio of long and short liquidations. Bitcoin accounted for $130 million, while Ethereum accounted for $76.32 million. Other coins contributed over $200 million to the liquidation amount, and the recent surge in smaller coins has been a major factor in this wave of liquidations. Investors need to manage risks carefully.