The Federal Reserve cuts interest rates, but the US stock market plummets, dragging down the cryptocurrency market. What happened overnight?

The Federal Reserve announced a 25 basis point rate cut on Wednesday, as the market expected, but Fed officials significantly raised the median target range for future policy rates, and also notably increased inflation expectations for next year and the year after, predicting only two rate cuts next year. Powell took a hawkish stance, stating that the Federal Reserve is cautious about rate cuts. Subsequently, US Treasury yields and the dollar rose, while non-US currencies, gold prices, and US stocks tumbled, with the Dow Jones briefly falling over 1100 points. (This marks the longest streak of declines since 1974 with ten consecutive days of decline).

The S&P 500 recorded its largest drop on a rate cut day since 2001, and Bitcoin plummeted over $6000. We also saw a retreat in other altcoins. The Federal Reserve's FOMC statement indicated that a rate cut of 50 basis points is expected in 2025 to 3.9%, followed by another 50 basis point cut to 3.4% in 2026. The Fed's dot plot shows that there could be two rate cuts in 2025, each by 25 basis points. Powell stated that the Federal Reserve's policy stance has significantly eased and that it will be more cautious when considering further interest rate adjustments. #加密市场回调