The cryptocurrency market has faced a dramatic downturn, with nearly $700 million liquidated over the past 24 hours. This sharp decline has paralleled turmoil in the traditional financial markets, where the US stock market lost a staggering $1.5 trillion in market value. The S&P 500 index plummeted by 2.95%, highlighting the breadth of investor unease.

The latest sell-off was triggered by comments from Federal Reserve Chair Jerome Powell during the recent Federal Open Market Committee (FOMC) meeting. Powell emphasized the Federal Reserve's position against owning Bitcoin and reaffirmed the long road ahead for inflation to reach the Fed's 2% target, estimating it might take one to two years to achieve. These warnings have amplified market fears, fueling a wave of sell-offs across asset classes.

Investors are now grappling with the implications of these developments. Many are questioning whether the recent downturn signals a short-term correction or a deeper shift in market dynamics. For some, the current market turbulence presents a buying opportunity, while others remain cautious, wary of further declines.

The dual impact of Federal Reserve policies and heightened inflation expectations has left both crypto and traditional markets on edge. As the dust settles, the coming days will be crucial in determining whether markets stabilize or continue to face volatility amid the Fed's tightening monetary stance.