Hawkish Fed Spurs Market Selloff, Exposing Overbullish Positioning šØ
The hawkish #FOMC triggered a widespread selloff in risk assets, with the Nasdaq dropping 3.56%, the S&P 500 falling 2.95%, and Bitcoin declining 6.13%. Although the Fedās 25bps rate cut was anticipated, panic stemmed from a downward revision in the dot plot, projecting two rate cuts in 2025 versus the marketās expectation of three.
Bitcoin hit a low of 98,800 during the Asian session, with altcoins losing over 10%, resulting in US$258.6 million in liquidated longs. The selloff highlights the marketās vulnerability following an extended bullish run since the election.
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