Market Event
Treasury Secretary Bessent clarified that the previously speculated "$2,000 dividend" plan is actually a tax cut measure, not direct liquidity injection into the market. Simultaneously, Dallas Fed President Lorie Logan delivered hawkish remarks, effectively dashing hopes for a December rate cut. These two negative catalysts quickly weighed on the crypto market.
Market Reaction
Bitcoin and Ethereum prices recorded sharp declines, with market panic intensifying significantly. Earlier optimism based on rate cut expectations and fiscal stimulus rapidly reversed. Bulls appear to have few clear cards left to play. The Fed's hawkish rhetoric has substantially lowered rate cut expectations, and the clarification of the fiscal stimulus plan has removed the illusion of near-term liquidity injection.
Outlook
The only remaining narrative pillar for the market lies in the AI sector, specifically the upcoming Nvidia earnings report. If earnings disappoint, further volatility could ensue, and the crypto market may continue its downward trend. Investors should closely monitor macro policy developments and earnings data.