U.S. Treasury Secretary Bessent clarified that the proposed $2,000 dividend is a tax cut, not direct liquidity injection, while Dallas Fed President Logan delivered hawkish remarks reducing December rate cut expectations. Bitcoin and Ethereum suffered sharp declines amid heightened market panic. AI narratives remain the last support, but the upcoming NVIDIA earnings could trigger further volatility.
Market Sentiment Turns Bearish: Bessent Clarification and Logan’s Hawkish Stance
U.S. Treasury Secretary Scott Bessent clarified that the proposed $2,000 dividend program is essentially a tax cut measure rather than direct cash transfers to households. This statement crushed market hopes for fiscal stimulus liquidity injection. Simultaneously, Dallas Federal Reserve President Lorie Logan delivered hawkish comments, signaling that a December rate cut is now highly unlikely.
The combined negative catalysts sent Bitcoin and Ethereum prices tumbling, with fear spreading across the crypto market. Currently, the AI narrative stands as the last pillar for bulls, but the upcoming NVIDIA earnings report could introduce additional volatility. Should the earnings disappoint, confidence may erode further, adding pressure on digital assets.
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