The total crypto market cap slumped from over $3.8 trillion to under $3.6 trillion at one point.

Although the US Fed reduced the key interest rates by 25 basis points as expected, Jerome Powell made a couple of remarks that impacted the entire crypto market in a highly negative manner.

The central bank's Chair warned that the rate cuts for 2025 could be fewer after the three consecutive ones at the end of 2024 and warned that the US is "not allowed to own bitcoin," despite Donald Trump's promise to explore how the country could put BTC on its balance sheet.

Riskier assets like cryptocurrencies reacted with immediate and violent price declines. Bitcoin, for one, dumped from over $105,000 to under $99,000 for the first time since December 11. The losses extend to nearly ten grand when compared to the Tuesday afternoon peak of over $108,000.

The altcoins, though, were impacted even more severely. Many plummeted by double digits from their respective tops to bottoms, including XRP, DOGE, AVAX, PEPE, LTC, and LINK.

Interestingly, Santiment weighed in on the correction and outlined the last four as the potential beneficiaries if the Fed-induced crash was a market overreaction.