The recent drama in the financial markets has been truly spectacular—The Fed's rate cut suspense suddenly changed, directly causing chaos in the two major camps of precious metals and cryptocurrencies.

Last night's market was brutal. Spot silver once plummeted over 8.7%, breaking through the $72 level, erasing nearly half of its nearly 200% gains accumulated this year. Gold also couldn't stay unaffected, dropping over 4%, dragged down by silver's shock. The crypto market was similarly affected, with several mainstream coins also under pressure.

The core contradiction is this: When will the Federal Reserve actually start cutting rates? The market is now completely divided.

One side is very confident—rate cuts will only be delayed, not missed, and might even be more aggressive. Some policymakers are calling for rate cuts, with predictions that the Fed could initiate a more aggressive easing cycle in the second half of next year. The bulls' logic is straightforward: political pressure will push the Fed to concede.

The other side is sounding the alarm. Major financial institutions' voices are quite the opposite—some say losing independence would be too costly for the Fed, while analysts from institutions argue that inflation remains stubborn, and the economy is resilient enough that the Fed might not cut rates at all in 2026.

This is the current situation—political forces are pushing downward, while institutional bigwigs are pulling upward, tearing the market apart with no consensus.

The recent surge and plunge in gold and silver are just warm-ups. The real test is ahead, and future volatility will only increase. For investors who are simultaneously watching precious metals and cryptocurrencies, this phase requires extra caution, and any position decisions must fully consider the uncertainty surrounding the Fed's moves.