Crypto market fell across the board: Fed's hawkish comments and liquidity expectations triggered panic

📉 On December 19, the crypto market fell sharply, with nearly half of the sectors falling by more than 10%. According to SoSoValue data, BTC and ETH fell by 5.14% and 6.11% respectively. Market sentiment was weak, and all major sectors were generally under pressure.

Specific market performance:

CeFi sector: down 5.17%

NFT sector: rose more than 20% yesterday, but fell 6.01% today

Layer 1 sector: down 8.14%

Layer 2 sector: down 9.37%

DeFi sector: down 10.55%

Meme sector: down 11.33%

DePIN and PayFi sectors: down 11.48% and 11.69% respectively

Despite the general market decline, some projects still performed well:

NFT sector: Pudgy Penguins (Pengu) up 9.54%

Moca Coin (MOCA): up 10.25%

AI Agents: AI Rig Complex (ARC) up 54.22%

Why did the market fall?

Analysts pointed out that this pullback may be closely related to the latest interest rate meeting of the Federal Reserve.

The Federal Reserve adjusted the number of interest rate cuts next year from 4 to 2, and raised the future core PCE inflation rate and GDP growth rate.

At the same time, Powell's hawkish remarks that exceeded market expectations caused panic in the market about liquidity expectations, which in turn affected the general decline of the crypto market sector.

Although the market is currently in a correction phase, there are still some high-quality projects that stand out in the market downturn.

Investors should pay close attention to the impact of the Fed's policy trends and macroeconomic changes on the crypto market, do a good job of risk management, and look for potential projects for layout.