Last night, the market staged a fierce volatility feast. Spot silver was hit hard, with a single-day decline of over 8.7%, dropping to around $72. Gold also couldn't escape, falling more than 4%. This was undoubtedly a heavy blow to the previously soaring precious metals market — it's worth noting that silver's year-to-date increase once approached 200%.

$BTC, $ETH, $BNB and other cryptocurrencies also experienced turbulence, with investors' nerves stretched tight. The gains were too fierce, and the adjustments naturally came just as aggressively.

What truly stirred the market was the eternal topic: When will the Federal Reserve cut interest rates? Currently, the market has formed two major camps, each holding different views.

The bullish voices are quite optimistic. They believe rate cuts will come sooner or later, and once they start, they may be more aggressive than expected. Behind this expectation is the influence of the Trump camp on the selection of the Federal Reserve Chair. Candidates like Hasset and Waugh have publicly expressed support for rate cuts, and Trump himself has been outspoken — "Opponents of mine, don't expect to be Chair." Based on this political reality, many analysts predict that the Fed may initiate a more aggressive rate-cutting cycle in the second half of next year.

But the warnings are equally loud. Moenihan, Chairman of U.S. Bank, bluntly stated that if the Fed loses its independence, the entire market will pay the price. He also warned that a low-interest-rate environment may not necessarily be beneficial for the U.S. economy.

Some institutions have a longer-term perspective. HSBC recently put forward a striking view: by 2026, due to persistent inflation and resilient economy, the Federal Reserve might not cut rates throughout the year, and interest rates will remain at current levels.

Political pressure is calling for rate cuts, while economic realities are ringing alarm bells. These two forces are colliding fiercely in the market. The huge fluctuations in precious metals and cryptocurrencies may just be the prelude to this battle of expectations.