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Analysis: Reasons for the Decline in US Stocks and Cryptocurrency Following Fed Rate Cut
Summary: In a recent post on X platform, cryptocurrency researcher 0xNing0x pointed out that the reason for the decline in US stocks and cryptocurrency after the Fed rate cut this month is due to the changes in the shape of the US bond yield curve before and after the rate cut. The Fed's 'three moves' in ...
In a recent post on X platform, cryptocurrency researcher 0xNing0x pointed out that the reason for the decline in US stocks and cryptocurrency after the Fed rate cut this month is due to the changes in the shape of the US bond yield curve before and after the rate cut. The Fed's 'three moves' in monetary policy - a 25 basis point rate cut, starting short-term bond purchases QE, and guiding expectations for a rate cut in 2026 - have steepened the yield curve. This 'bull steepening' shape will dominate global financial market trends from now until the first quarter of next year, putting pressure on assets like US tech stocks and cryptocurrency that were overly optimistic about rate cuts, while US dividend stocks (banks and industrials) will enter a period of valuation repair.
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Link: Analysis: Reasons for the Decline in US Stocks and Cryptocurrency Following Fed Rate Cut [Copy]
