FOMC meeting triggers market shock
Last night's FOMC meeting cut interest rates by one yard, as expected, to a target range of 4.25% to 4.5%. This is the third interest rate cut this year, with the cumulative reduction reaching 1 percentage point, which does not deviate from market expectations.
However, even though economists and analysts had expected before the meeting that the pace of rate cuts might slow next year, expectations that Fed officials would cut rates only twice in 2025 still exceeded market imagination. In addition, the Fed also predicts that inflation may not return to its 2% target until 2027, longer than the 2026 originally forecast.
This series of news seriously affected the short-term trend of risk assets. The Dow Jones Industrial Index fell by more than 1,000 points, the S&P 500 and the Nasdaq fell by 2.95% and 3.56% respectively, and the U.S. dollar index rose by 1.1% to 108.131.
Bitcoin drops to 100,000 level
The situation in the cryptocurrency market is even more dire, with Bitcoin tumbling more than 5% to below $101,000 from the $106,000 level at 8 a.m. yesterday. In addition, Federal Reserve Chairman Powell was also asked about related questions about the Bitcoin National Strategic Reserve at the post-meeting press conference. In response, Powell said that the Federal Reserve has no authority to hold Bitcoin. He further emphasized that the legal complexities regarding holding Bitcoin are a matter for Congress to consider, but the Fed is not seeking any changes to the law. This unfavorable statement for Bitcoin may also be one of the potential reasons for Bitcoin's collapse.
The entire network’s long orders liquidated 670 million magnesium
Except for Bitcoin, the overall market performance is quite miserable. According to data from Soso Value, the average decline of most concept sectors is higher than that of Bitcoin, among which PayFi, DePIN and Meme Coin sectors have the largest declines.
In the past 24 hours, long orders across the market were liquidated with 670 million magnesium.
(This article is reproduced from GT Radar with permission)
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