📊 Bitcoin and US stocks both fell after the FOMO meeting, is it related to the hawkish remarks of Fed Chairman Powell?
After Fed Chairman Powell's speech in the early hours of yesterday morning, the market experienced violent fluctuations. Not only did the price of Bitcoin fall all the way, but the decline of most altcoins even far exceeded that of Bitcoin, and the three major US stock indexes also suffered a heavy blow. The general market view is that the main reason for this wave of plunge is the adjustment of the expectation of interest rate cuts in 2025.
The market originally expected the Fed to cut interest rates four times in 2025, but after Powell's speech, most people believed that there might only be two interest rate cuts next year. This change in expectations, coupled with the impact of negative reports in related media, led to a comprehensive decline in the US stock and cryptocurrency markets.
However, there are also different views that the views of the market and the media are changing at any time. Although the current market is very volatile, if the market sentiment warms up in a week or two, and the price of Bitcoin hits a new high, then this volatility may not be mentioned again. Historical experience shows that each FOMC meeting will cause large market fluctuations before and after, but when the market returns to fundamentals, different news will dominate the market.
Therefore, some analysts believe that the impact of the Fed's hawkish remarks on the market may be short-lived and may only last for a few days. Once the market digests this news, a new narrative may be ushered in, and everyone's views may be different at that time.
🗣 Summary:
Fed Chairman Powell's speech triggered the market's adjustment of expectations for interest rate cuts in 2025, leading to a sharp drop in Bitcoin and the US stock market. The market originally expected the Fed to cut interest rates four times in 2025, but Powell's remarks led many people to believe that the number of rate cuts may be halved.
This shift in expectations, coupled with negative media reports, caused panic selling in the market. Nevertheless, some analysts believe that this impact may be short-lived, and market sentiment and views may change at any time. Once the market digests this news, a new uptrend may be ushered in.
💬What do you think of this market decline? Do you think the Fed's remarks will have a long-term impact on cryptocurrencies and the stock market? Leave your opinions and insights in the comment section!
#美联储降息 #比特币下跌 #鲍威尔讲话 #股市下跌