Double Blow from Bessent and Logan
U.S. Treasury Secretary Bessent clarified that the previously rumored $2,000 dividend plan is actually a tax cut rather than direct liquidity injection, dashing hopes for fiscal stimulus. Meanwhile, Fed official Logan delivered hawkish remarks, explicitly pushing back against a December rate cut, further undermining bullish sentiment.
Market Reaction and Panic
Bitcoin and Ethereum prices suffered sharp declines as panic swept through the market. The Fed's hawkish stance reduced expectations for rate cuts, and the fiscal stimulus was clarified as tax cuts rather than quantitative easing, crushing investors' hopes for liquidity loosening. The crypto market came under significant pressure.
AI Narrative and Nvidia Earnings Risk
The AI narrative now serves as the last pillar of support for crypto market sentiment, but Nvidia's upcoming earnings could bring further volatility. A disappointing earnings report may accelerate the market downturn.