Cryptocurrencies faced a brutal day on Tuesday, with traders anxiously awaiting the Fed's upcoming FOMC minutes and Fed Chair Jerome Powell's highly anticipated speech at Jackson Hole this Friday.

Bitcoin plunged 3.2%, slipping below $114,000, while Ethereum dropped a staggering 5.3%, falling under $4,200. XRP plummeted 6.2%, Cardano's ADA fell 8%, and overall, the crypto market dipped 3.2%.

Crypto-related companies suffered even worse fates. Shares of firms like Marathon Digital (MARA), Coinbase (COIN), and MicroStrategy (MSTR) saw declines of 5.7%, 5.8%, and 7.4%, respectively.

In contrast, traditional U.S. equities had a more stable day. The Dow finished flat, the S&P 500 fell by 0.59%, and the Nasdaq dropped around 1.5%. This stark difference highlights the vulnerability of digital assets, which significantly depend on low liquidity.

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