Cryptocurrency markets faced a policy double whammy as Bitcoin and Ethereum prices plunged, with panic spreading across the digital asset space. Treasury Secretary Bessent clarified that the widely discussed $2,000 dividend proposal is essentially a tax cut rather than direct liquidity injection, dashing hopes for fiscal stimulus. Simultaneously, Fed official Logan delivered hawkish remarks, explicitly opposing a December rate cut and further weakening easing expectations. Market confidence took a hit, with digital assets leading the decline.
With both fiscal and monetary policy disappointments, AI narrative now stands as the final pillar of market support. However, Nvidia’s upcoming earnings report could pose a risk. If the results or forward guidance fall short, it may trigger a sell-off in tech sectors and spill over into crypto. The bulls currently lack a strong macro catalyst, making a short-term rebound unlikely.