$BNB $BTC $ETH Why did the Federal Reserve's interest rate cut expectations trigger a market crash?
On December 18, the probability of the Federal Reserve cutting interest rates is as high as 95%, which is a common prediction on Wall Street. However, not only did the cryptocurrency markets' BTC, ETH, and BNB experience declines, many altcoins even plummeted, and U.S. stock indices were not spared, with the Dow Jones Index setting a record for the longest consecutive decline since 1978. This phenomenon has sparked widespread attention and discussion in the market.
Although the expectations for an interest rate cut are high, this information has long been "priced in" by the market, meaning that the current prices have already reflected this expectation. Therefore, market focus has shifted from the rate cut in December to the trajectory of interest rates in 2025, particularly paying attention to the interest rate dot plot and Chairman Powell's speech to be announced tonight. Currently, the market generally expects the Federal Reserve to take a more hawkish stance, leading to some risk assets' funds being withdrawn in advance to avoid uncertainty.
