Bessent’s clarification of the “$2,000 dividend” changed how the market interpreted the fiscal stimulus narrative. The plan was clarified as tax cuts rather than a direct injection of liquidity, weakening confidence that fresh cash would immediately support risk assets. Against that backdrop, Bitcoin and Ethereum both posted sharp price declines, and market fear intensified.
Lower Rate-Cut Expectations Weigh on Crypto Bulls
Pressure also came from hawkish Federal Reserve commentary. Logan’s remarks were described as killing the prospect of a December rate cut, leading to lower expectations for monetary easing. For crypto assets, rate-cut expectations and liquidity narratives are often key sources of bullish momentum; when fiscal stimulus is reframed and the Fed’s tone turns more hawkish, confidence is hit on both fronts.
AI remains one of the last major narratives supporting bullish sentiment. The input notes that Nvidia’s earnings could bring further volatility. In this setting, the decline in Bitcoin and Ethereum reflects a combination of weakened fiscal stimulus expectations, reduced hopes for a December rate cut, and the market’s reliance on the AI narrative ahead of Nvidia’s results.