Policy and Market Update
Treasury Secretary Scott Bessent clarified that the previously reported $2,000 dividend plan is essentially a tax cut rather than a direct liquidity injection into the economy. Meanwhile, Dallas Fed President Lorie Logan delivered hawkish remarks, effectively ruling out a rate cut in December. The combination of these two developments has crushed hopes for near-term monetary easing, putting significant pressure on risk assets.
Crypto Market Plunges
Bitcoin and Ethereum experienced sharp price declines as market panic intensified. The core trigger was the persistent hawkish tone from Federal Reserve officials—the timeline for rate cuts has been pushed back, and fiscal stimulus has been reframed as a tax cut rather than direct liquidity injection, shaking bullish confidence. The only remaining pillar of support in the market is the AI narrative, though the upcoming Nvidia earnings report could introduce additional volatility. If results disappoint, it may trigger a further selloff across risk assets including cryptocurrencies.
Investors are now recalibrating their expectations, with the probability of a December rate cut falling sharply. The dollar strengthened on the hawkish outlook, adding headwinds for crypto prices. Market participants are closely watching Nvidia's earnings as a potential catalyst for the next directional move.