🚨 Black Thursday! The Federal Reserve goes hawkish, and the market crashes! 🚨
🔥 Epic crash!
After the Federal Reserve's Powell cut interest rates by 25 basis points, he delivered a **“hawkish” big package** to the market! He stated that the first phase of interest rate cuts is over and that future cuts will slow down according to data, which directly released a hawkish signal, stunning the market!
💥 Major adjustments in the dot plot!
Previously, the market predicted that the Federal Reserve would cut rates four times next year, but the dot plot indicates only two cuts, with some committee members suggesting only two cuts in the year after next! This undoubtedly dealt a heavy blow to the market, directly breaking investors' expectations!
📉 U.S. stocks crash!
Yesterday, the three major U.S. stock indexes collectively plummeted, with the Nasdaq dropping a staggering 3.5%. Bitcoin was not spared, crashing directly by 8000 points! Meanwhile, the U.S. dollar index soared above 108, creating a tumultuous market environment that poses huge pressure on the cryptocurrency market in the short term!
📈 The Federal Reserve escalates its hawkish stance!
Moreover, the Federal Reserve significantly raised its economic forecast for the U.S. in 2024, increasing GDP from 2.0% to 2.5%, and raising PCE inflation expectations from 2.3% to 2.4%. This indicates that the Federal Reserve believes the economy is strong, employment is stable, and inflation pressures remain, meaning they will not rush to cut rates in the short term, severely denting market expectations for rate cuts!
⚠️ Impact on the cryptocurrency market:
For Bitcoin and other cryptocurrencies, the Federal Reserve's hawkish remarks may mean that market volatility will intensify in the short term. Rising funding costs and decreased risk appetite will put even more pressure on the cryptocurrency market.
💬 **What’s your opinion? Are you bearish or bullish? Leave a comment to share your thoughts!**👇
