Due to ongoing inflation, the Federal Reserve now expects to cut interest rates twice in 2025. The hawkish FOMC has led to a significant drop in all risk assets, particularly meme coins and altcoins in the crypto space, which have seen especially large declines. Altcoins need a substantial increase in liquidity to enter a bull market, as they lack ecosystems, VC institutions are continuously unlocking their holdings, and their Fully Diluted Valuation (FDV) remains high. They can only rely on significant liquidity influx to drive prices up. The expectations for interest rate cuts next year have greatly weakened, and institutions are only buying Bitcoin, resulting in a slight decline in BTC while altcoins plummet. Although the direct reason is the Federal Reserve's hawkish stance on interest rates, the fundamental reason for the sharp decline is the market's excessive bullishness. Since Trump's campaign, risk assets (especially BTC) have experienced significant one-sided gains, making the market highly susceptible to any shocks. The United States faces a phenomenon of high debt, high tariffs, high exchange rates, and high interest rates, with various contradictions becoming increasingly pronounced. The capital market holds great hope that Trump’s election will quickly reverse issues in the economic and political spheres, which is why the 'Trump' trade over the past two months has led to significant gains in US stocks and crypto assets. Trump's team is ready to roll up their sleeves and get to work, which will certainly require support from fiscal measures and the Federal Reserve, needing interest rate cuts to alleviate the funding costs for American companies and reduce debt pressure. However, after this meeting, the Federal Reserve significantly lowered expectations for rate cuts, delivering a harsh blow to Trump. The funding and debt ceiling legislation supported by Trump was also rejected by the US House of Representatives, raising concerns in the market about whether Trump will be able to smoothly implement his policies once in office.