Opinion: The reason why US stocks and Bitcoin fell instead of rising after the Fed's rate cut this month lies in the change in the shape of the US Treasury yield curve before and after the rate cut.

Crypto researcher 0xNing0x published an article on the X platform stating that the reason why US stocks and Bitcoin fell instead of rising after the Federal Reserve's rate cut this month lies in the change in the shape of the US Treasury yield curve before and after the rate cut. The Fed's three-pronged monetary policy move—a 25 basis point rate cut, the start of short-term bond purchases through quantitative easing (QE), and guiding expectations for one rate cut in 2026—has refined the steepening process of the US Treasury yield curve. This "bullish steepening" will dominate the global financial market trend from now until the first quarter of next year. Assets such as US AI stocks and Bitcoin, which have over-priced in optimistic rate cut expectations, will continue to be under pressure, while US high-yield stocks (bank stocks and industrial stocks) will enter a valuation repair cycle.