Event Overview: Dual Policy Blow
Bessent explicitly clarified that the rumored $2000 dividend plan is in fact a tax reduction measure, not direct liquidity injection into the economy, disappointing traders who had anticipated fiscal stimulus. Simultaneously, Fed official Logan issued strongly hawkish comments, effectively extinguishing any remaining hopes for a December rate cut. The dual policy shock dismantled the bullish narrative built on expected monetary easing and fiscal support.
Market Reaction: Bitcoin, Ethereum Crash as Fear Mounts
Bitcoin and Ethereum prices suffered severe drops, with the crypto fear and greed index plunging into panic territory. Without the prop of rate cut expectations and liquidity injection, the crypto market has lost its primary near-term narrative. The only remaining narrative pillar is the AI story, but Nvidia's upcoming earnings report poses a significant risk of further volatility—should results disappoint, another wave of sell-offs could follow.