Due to persistent inflation, the Federal Reserve now expects to cut interest rates twice in 2025. The hawkish FOMC has caused a sharp decline in all risk assets, particularly in the crypto space, where meme coins and altcoins have seen significant drops. Altcoins need a substantial influx of liquidity to usher in a season of widespread increases, as they lack ecosystems, VC institutions continue to unlock shares, and their FDV remains high. They can only rely on massive liquidity injections to rally. The expectation of a significant reduction in interest rate cuts next year has led institutions to only buy Bitcoin, resulting in a slight drop in BTC while altcoins plummet. Although the direct cause is the Federal Reserve's hawkish stance on interest rate cuts, the fundamental reason for the sharp decline is the market's excessive bullishness. Since Trump's campaign, risk assets (especially BTC) have experienced a significant one-sided increase, making the market highly susceptible to any shocks. The U.S. faces a spectacle of high debt, high tariffs, high exchange rates, and high interest rates, with various contradictions becoming increasingly pronounced. The capital market holds high hopes that Trump’s election will quickly reverse economic and political issues, so the “Trump” trade over the past two months has led to significant increases in U.S. stocks and crypto assets. Trump's team is rolling up their sleeves to get to work, which certainly requires the support of fiscal and the Federal Reserve, needing interest rate cuts to alleviate the funding costs for American companies while reducing debt pressure. However, after this meeting, the Federal Reserve significantly lowered its expectations for interest rate cuts, dealing a heavy blow to Trump. The funding and debt ceiling proposals supported by Trump were also rejected by U.S. congressmen, raising concerns in the market about whether Trump will be able to smoothly implement his policies after taking office.