Today's Major US Economic Event Could Shake Crypto Markets

**Crypto Market Faces $170 Billion Wipeout as Federal Reserve Data Looms**

The cryptocurrency market experienced a dramatic overnight collapse, erasing nearly $170 billion in total market capitalization as investors brace for critical U.S. economic announcements. Bitcoin and major altcoins plummeted amid growing uncertainty surrounding Federal Reserve monetary policy decisions expected within the next 24 hours.

Market analysts predict that fresh U.S. economic data could trigger unprecedented volatility across digital assets, with Bitcoin's price action serving as a key indicator for broader cryptocurrency sentiment. The sudden market dump has affected leading cryptocurrencies, DeFi tokens, and blockchain-based assets, creating ripple effects throughout the digital finance ecosystem.

Trading volumes surged as investors liquidated positions ahead of potential Federal Reserve signals that could reshape monetary policy. Cryptocurrency exchanges reported increased activity as traders positioned themselves for further market turbulence.

The correlation between traditional financial markets and digital assets continues strengthening, with Bitcoin and Ethereum closely tracking stock market movements. Crypto investors now watch Federal Reserve communications closely, as interest rate decisions and economic outlook statements directly impact cryptocurrency valuations and institutional adoption rates.