🚨 BTC at 98,000! ETH at 3,154! U.S. Stocks Crash — Crypto Market Shaken!
Last night’s crypto meltdown wasn’t about any individual project — the core issue is still the same: high-risk assets were dragged down by the U.S. stock market.
But this time, history flipped on its head.
Usually, when the U.S. government reopens after a shutdown, stocks strengthen within 1–2 weeks.
This time?
Day 1 back to work and the three major indexes collapsed, with the Nasdaq down over 2%.
AI, chips, and crypto-related sectors were hammered, led by Nvidia and Tesla.
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⚡ What Triggered This Round of Turbulence?
(1) Stalemate Panic → Data Anxiety
Now that the government is operational again, a backlog of delayed macro data (Sept–Oct payrolls, retail, etc.) is about to hit all at once.
These releases matter because they directly impact expectations for whether rate cuts are still on the table this year.
Fed officials remain hawkish, pushing the probability of a December rate cut from 69% → 52%.
Markets rapidly repriced this shift, causing major swings across risk assets.
Bitcoin even dipped back below $100K during the chaos.
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(2) Alibaba’s Qwen Announcement Sparks an AI Sell-off
Alibaba upgraded “Tongyi” and rebranded it as Qwen, signaling plans to roll out agent-like AI systems similar to GPT frameworks.
Wall Street took this as a sign that China’s AI race is accelerating, especially with open-source models spreading fast.
Concerns grew that massive U.S. tech investments may face return dilution globally.
At the same time:
Meta’s cash flow is tightening
Oracle’s capex has surged
Cloud giants are expanding data centers while debt grows
Short sellers saw an opening ahead of Nvidia’s earnings and piled on with quant-driven selling
Result: amplified panic across AI and tech sectors.
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💧 The Real Year-End Determinant: Liquidity
With the government back online, fiscal operations resume — and significant fiscal injections are expected in the next two months.
Pre–midterm election stimulus is also hard to avoid.
Multiple officials have hinted:
A decline in reserves may force the Fed to passively expand its balance sheet, which would reshape year-end liquidity conditions.
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🌪️ In short:
The sell-off is macro-driven, not crypto-driven.
The next moves will depend heavily on liquidity, Fed expectations, and incoming macro data.
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