Bessent’s clarification of the “$2,000 dividend” changed how the market viewed the fiscal stimulus narrative. According to the source information, the plan was clarified as tax cuts rather than a direct injection of liquidity. At the same time, Logan’s hawkish comments weakened expectations for a December rate cut, reducing a key macro support that crypto bulls had been relying on.
Against this backdrop, Bitcoin and Ethereum prices dropped sharply, and market fear intensified. The source points to Federal Reserve hawkish remarks as a driver behind lower rate-cut expectations, while the fiscal stimulus clarification also hurt confidence. For bullish traders, both the rate-cut narrative and the liquidity narrative came under pressure at the same time.
The remaining support highlighted in the report is the AI narrative. However, Nvidia’s earnings may bring further volatility. With Bitcoin and Ethereum both under pressure, the market is watching policy language, fiscal interpretation, and major technology earnings as connected sources of risk.