According to MarsBit, the market narrative around a “$2,000 dividend” shifted after Bessent clarified the plan. The fiscal stimulus discussion was described as tax cuts rather than a direct injection of liquidity into markets. At the same time, Logan’s hawkish comments weighed on expectations for a Federal Reserve rate cut in December, putting pressure on risk assets. Bitcoin and Ethereum both recorded sharp price declines as fear in the crypto market intensified.
Rate-Cut and Fiscal Stimulus Expectations Cool Together
The sell-off centered on two connected developments. First, hawkish Federal Reserve rhetoric reduced confidence in a December rate cut. Second, the fiscal stimulus plan was clarified as a tax-cut arrangement rather than a direct dividend-style liquidity boost. With both expectations weakening, market confidence took a hit and bullish positioning faced heavier pressure.
The report also noted that the artificial intelligence narrative has become one of the remaining pillars for sentiment. Nvidia’s earnings were cited as a source of further volatility, with the result tied to trading sentiment around the AI theme. The declines in Bitcoin and Ethereum show how changes in macro policy expectations continue to affect crypto asset pricing.