SHARP

4E: Trump's tariff exemptions fail to halt the decline of US stocks, and the cryptocurrency strategic reserve policy falls short of expectations, leading to a sharp drop in Bitcoin

ChainCatcher news, according to 4E monitoring, U.S. stocks continued to decline sharply on Thursday, with all three major indices falling. Trump's tariff policy made a latest concession, announcing a delay in tariffs on Canada and Mexico until April 2, but failed to alleviate market pessimism. The S&P 500 fell 1.78%, hitting a low since the election; the Dow Jones dropped 0.99%, and the Nasdaq plummeted 2.61%.The cryptocurrency market also showed weakness. The decline in U.S. stocks affected crypto assets, while crypto czar David Sacks stated that Trump has signed an executive order to establish a strategic Bitcoin reserve, but the order only involves hoarding existing confiscated assets rather than direct purchases. "Hoarding old, not buying new" disappointed the market, causing Bitcoin to quickly drop to a low of $84,667, currently hovering around $88,000, down about 4.2% for the day. Altcoins generally followed Bitcoin lower, with Ethereum falling 4.68% to around $2,100.In the forex commodities sector, the U.S. dollar index fell for the fourth consecutive day due to tariff concerns; oil prices remained stable amid fluctuations influenced by U.S. tariffs and OPEC+ production increase plans; gold prices retreated due to profit-taking, with spot gold down 0.1%, ending a three-day streak of gains.The current market is increasingly weary of the uncertainty surrounding U.S. policies, especially feeling fatigued by the frequent statements from executive department members and the repeated adjustments to tariff policies. Investors are focusing on Friday's non-farm payroll report to gauge the Federal Reserve's monetary policy direction, while the crypto market is also looking forward to the White House crypto summit on Friday for the latest guidance for the industry.

4E: The Federal Reserve sharply cuts interest rate expectations, causing a collapse in global markets

ChainCatcher news, the Federal Reserve announced on Wednesday a scheduled rate cut of 25 basis points, but significantly raised future policy rate expectations and inflation expectations, now expecting only two rate cuts totaling 50 basis points next year, halving the previous expectation.According to 4E monitoring, after the release of the Fed's dot plot and economic outlook, risk aversion sentiment surged, causing all three major U.S. stock indices to decline. The S&P 500 index fell by 2.95%, the Dow Jones dropped by 2.58%, marking its longest losing streak since 1974 at ten consecutive days, and the Nasdaq fell by 3.56%. Tesla dropped over 8%, leading the decline among tech giants. Cryptocurrency-related stocks also fell broadly, with MSTR down 9.52% and Coinbase down 10.2%.The Fed's actions have dragged down the U.S. stock market, leading to a significant correction in the crypto market. BTC fell below $100,000, with Powell's remark that "the Fed does not allow nor intends to hold Bitcoin" intensifying selling pressure, resulting in a Bitcoin decline of up to 6.2%, reporting at $99,235 before the deadline. Ethereum briefly dipped to $3,542, a drop of 7.27%, while altcoins generally experienced double-digit declines. In the past 24 hours, the total liquidation amount in the cryptocurrency market reached $842 million, deepening market panic.In the forex and commodities sector, the Fed's drastic cut in rate cut expectations pushed the dollar index up over 1% to a two-year high; gold prices fell over 1% to a one-month low; U.S. crude oil inventories decreased, pushing oil prices higher, but the slowing pace of rate cuts dampened oil demand outlook, causing oil prices to rise and then gradually erase gains.After announcing a rate cut of 25 basis points to 4.25%-4.5% as expected in this meeting, the Fed's released "dot plot" indicated that only two more rate cuts are expected by 2025, halving the planned number of cuts compared to the September dot plot, with a hawkish stance exceeding expectations, leading to extreme fear in the market. Fed officials also expect two more rate cuts in 2026 and one more in 2027.
ChainCatcher Building the Web3 world with innovators