Event Recap
U.S. Treasury Secretary Scott Bessent this week clarified that the much-speculated '$2,000 dividend' program is not a direct cash handout to citizens but rather tax reductions, meaning the fiscal stimulus will not inject immediate liquidity into the markets. At the same time, Federal Reserve Governor Lorie Logan delivered a hawkish speech, making it clear that a December rate cut is highly unlikely. These two pieces of news crushed market expectations of easier monetary policy.
As a result, Bitcoin and Ethereum prices experienced significant pullbacks, with fear spreading across the crypto space. Bulls appear to have no clear catalyst left to rely on. The only remaining pillar of confidence, the AI narrative sector (tokens linked to AI trends), is itself at risk—Nvidia's upcoming earnings report could trigger sharp swings. If the data disappoints, it could further drag down the crypto market. Overall, short-term sentiment is bearish, and investors should be cautious of the dual pressures from policy and corporate earnings.