U.S. Treasury Secretary Scott Bessent clarified that the previously rumored $2,000 dividend plan is actually a tax cut measure, not direct cash handouts to the public. The statement dashed market expectations for massive fiscal stimulus, while Dallas Fed President Lorie Logan delivered hawkish remarks, explicitly opposing a rate cut in December. This combination severely dented bullish sentiment.
Bitcoin and Ethereum prices experienced sharp declines, with market panic spreading rapidly. Fed officials continue to send hawkish signals, further lowering the probability of a rate cut and heightening concerns over liquidity tightening. The clarification of the fiscal stimulus plan implies no near-term liquidity injection, putting pressure on asset prices.
Currently, the AI narrative remains one of the few supporting pillars in the market, but upcoming Nvidia earnings could introduce additional volatility. If the earnings report disappoints, the crypto market may face a deeper correction.