Stocks and cryptocurrencies both plummet! The Fed is expected to cut interest rates by only 2 basis points next year, and Tesla tumbles 8% as the US stock market plunges wildly.

The Federal Reserve announced a 1-point drop in interest rates this morning, but hinted that it would slow the pace of rate cuts next year, only reducing by 2 points instead of the anticipated 4 points in September. Due to the slower rate cut than expected by the market, the major U.S. stock indices plummeted at the close today, with the Dow falling over 1100 points, falling for 10 consecutive trading days. The cryptocurrency market also took a nosedive, with BTC breaking the $100,000 mark. (Background: BTC falls below 104,000. Tonight's probability of the Fed cutting interest rates exceeds 95%, but will it slow down next year?) The Fed's decision to cut interest rates by 1 point this morning, as expected by the market, with the Federal Open Market Committee (FOMC) voting 11 in favor and 1 against, lowered the federal funds interest rate to 4.25%-4.5%. Cleveland Fed President Beth Hammack voted against, advocating to keep the interest rate unchanged. The Fed turned hawkish, causing a double hit to stocks and currencies. However, the Fed lowered its forecast for the number of rate cuts next year, indicating a more cautious approach to future rate cuts. The new Interest Rate dot plot shows that Fed officials expect the Benchmark Interest Rate to reach a range of 3.75% to 4% by the end of 2025, meaning there will only be two 1-point rate cuts next year, fewer than the expected 4 cuts in September. In addition, Fed officials also lowered their forecast for the number of rate cuts in 2026, with the federal funds interest rate expected to remain at 3.4% in 2 years, higher than the 2.9% expected in September. The Fed now expects it will take longer for inflation to fall to the 2% target, so it has dropped its expectations for rate cuts next year. Fed Chairman Powell said at a press conference after the meeting that today's decision was indeed difficult, but the Fed believes it is the right choice. The next phase will be more cautious about further rate cuts, and will need to see more progress on inflation before considering further cuts. Due to the slower rate cut than expected by the market, the U.S. stock market fell sharply on Wednesday, with the Dow falling over 1100 points, the first consecutive drop in 10 trading days since 1974. The performances of the four major U.S. indices are as follows: The Dow Jones Industrial Average fell 1123.03 points or 2.58% to close at 42326.87 points. The S&P 500 fell 178.45 points or 2.95% to close at 5872.16 points. The Nasdaq fell 716.36 points or 3.56% to close at 19392.70 points. The Philadelphia Semiconductor Index fell 198.81 points or 3.85% to close at 4970.98 points. The seven giants of the U.S. stock market all fell, with Tesla falling the most by 8.28%, while Nvidia's fall of 1.14% was the most resistant. The cryptocurrency market also experienced a nosedive, with BTC falling from a high of $104,800 this morning all the way down, breaking the $100,000 mark at 10 am this morning, bottoming out at $98,960 and currently trading at $99,632, with a 24-hour decline of 5.5%. Powell stated: The Fed does not allow the holding of BTC. In addition, BTC experienced a big dump, possibly related to Powell's statement that the Fed has no intention of participating in massive BTC hoarding actions. He said at a press conference after the meeting this morning that the Fed is not allowed to hold BTC, and the legal issues related to holding BTC are issues that Congress needs to consider, but at the Fed, there is currently no seeking to amend the law. U.S. President-elect Trump has previously stated that he will establish a strategic BTC reserve for the U.S., but did not mention the details of this plan, only mentioning that the U.S. government has confiscated about 200,000 BTC from criminals, which can be used as initial reserves, and Republican Senator Cynthia Lummis has proposed a bill to establish a national BTC reserve, allowing the Treasury Department to buy 200,000 BTC annually until accumulating 1 million BTC. However, Barclays analysts released a report this week analyzing that funding for a strategic BTC reserve may require congressional approval and the issuance of new U.S. bonds, so the bank doubts that this plan will face strong opposition from the Fed. Related reports: The Federal Reserve's megaphone: The probability of a 1-point rate cut in December reaches 97.1%! Could the U.S. CPI's heavy blow give the green light to a December rate cut by the Fed? It's difficult for the U.S. to establish a BTC reserve! Expert: The Fed currently loses $1 billion per week, and has no money to buy BTC. (Stock and currency double hit! The Fed is only expected to cut rates by 2 points next year, and Tesla falls 8%. The U.S. stock market plummets) This article was first published on Dynamic Zone BlockTempo, the most influential blockchain news media.