Bessent Douses Fiscal Stimulus Hopes
U.S. Treasury Secretary Scott Bessent clarified that the proposed $2,000 “dividend” is actually a tax reduction measure, not a direct cash handout to households. This clarification crushed market expectations for a major fiscal stimulus injection, removing a key liquidity tailwind for risk assets including cryptocurrencies.
Logan's Hawkish Remarks Crush December Rate Cut Bets
Dallas Fed President Lorie Logan delivered a hawkish message, stating that inflation remains stubborn and further rate hikes are not off the table. She strongly suggested that a December rate cut is unlikely. Markets had previously priced in a >50% probability of a cut in December, but Logan's comments sent Treasury yields soaring and the dollar strengthening, delivering a double blow to Bitcoin and Ethereum.
Market Impact and Outlook
Bitcoin and Ethereum suffered sharp declines, with Bitcoin losing key support levels and Ethereum dropping even more dramatically. Panic has spread among traders, and bullish momentum has been shattered. The AI narrative remains the last pillar of support for the crypto market, but all eyes are now on Nvidia's upcoming earnings report. A disappointing result could trigger another wave of selling across both tech stocks and AI-related tokens.