Golden Finance reports that QCP Capital stated in an official channel that the hawkish FOMC has caused a significant drop in all risk assets. The Nasdaq plummeted by 3.56%, the S&P 500 fell by 2.95%, and Bitcoin dropped by 6.13%. Although the Federal Reserve's 25 basis point rate cut was in line with expectations, the root of the panic can be attributed to the downward adjustment of the dot plot. Due to ongoing inflation, the Federal Reserve now expects to cut rates twice in 2025, while the market generally anticipates three rate cuts. Bitcoin fell to a daily low of $98,800 during the Asian trading session, with several altcoins dropping by at least 10%, and the market liquidated long positions worth $258.6 million. While it is easy to attribute the sell-off to the Federal Reserve's hawkish rate cut, the fundamental reason for the morning crash is the market's excessive bullish positioning. Since the election, risk assets have experienced an impressive one-way rise, making the market extremely susceptible to any shocks.
