The crypto market just took a brutal hit, shedding nearly 3% of its total value as panic grips investors. Bitcoin tumbled below $95,000, while Ethereum slid towards $2,500, marking fresh weekly lows in the wake of Fed Chair Jerome Powell’s latest Senate testimony.

Fed Chair Jerome Powell’s testimony to the Senate Banking Committee on Tuesday, Feb. 11, only served to feed the bears who have since forced the crypto industry to shed close to 3% of its market cap in the last 24 hours, bringing it down to $3.15 Trillion.

While delivering the semi-annual Monetary Policy Report to the committee, Powell conveyed a message of cautious optimism that spooked many investors.

He argued that the Federal Reserve will not be in a hurry to reduce short-term interest rates even though unemployment rates are low and inflation hovers slightly above the 2% target. He argues that easing policies too quickly would impede the gains in controlling inflation.

Crypto Market Reacts to Powell’s Sentiments Negatively

Powell’s testimony came right after Trump raised tariffs on steel and aluminum imports, which triggered a panic in the crypto market. They fed the bearish trend that has gripped the market for the last two weeks, sent top coins tumbling to local bottoms, and forced a disproportionate liquidation of long trades.

At press time, Bitcoin had lost close to 3% of its yesterday’s highs and to $94,875 – its lowest point in the last seven days. This effectively wipes all the gains it had made since the Feb. 3 market crash.

Ethereum’s price has dipped by 3% in the last 24 hours to intraday lows of $2560. The news now has the, already struggling, altcoin trading close to the monthly lows of $2,600. And if the record short ETH positions currently open are anything to go by, the market doesn’t expect it to post a significant momentum shift soon.

Ripple, Solana, and Cardano reacted to the news with value losses of between 4% and 6%. It is important to note that three had posted impressive gains in the last two days after the SEC acknowledged receipt of their ETF filings.