Policy Shift Signals: Bessent's Clarification and Logan's Hawkish Tone
Treasury Secretary nominee Bessent clarified that the previously discussed '$2,000 dividend' plan is actually a tax reduction measure, not direct liquidity injection into the market. This contrasts sharply with earlier market expectations of fiscal expansion. Meanwhile, Dallas Fed President Lorie Logan delivered hawkish remarks, explicitly signaling opposition to a December rate cut, causing rate-cut expectations to plummet. The combined impact left bullish investors without key support.
Market Reaction: BTC and ETH Drop Sharply, Panic Spreads
Following the news, Bitcoin and Ethereum prices fell rapidly. BTC broke below a key support level, while ETH corrected in tandem, with the market fear index spiking. The Fed's hawkish stance combined with weaker-than-expected fiscal stimulus prompted capital that had been betting on liquidity easing to exit quickly. Risk appetite deteriorated significantly in the short term.
AI Narrative as the Last Pillar, Nvidia Earnings Risk Remains
The only remaining positive driver in the crypto market is the AI narrative, but this pillar faces uncertainty. Nvidia's upcoming earnings report could be the next turning point: a strong beat might temporarily lift risk assets, while a miss could trigger another round of selling. Investors should closely monitor the earnings data this week and its sentiment contagion to the overall market.