Whoa! The reason for the market drop has been found! The new Fed Chair Walsh's speech is basically a nuke for the market. He thinks the Fed's $7 trillion balance sheet is way too bloated. It needs a major slimming down. We might be looking at a massive quantitative tightening next. This is essentially a liquidity purge for the market. We used to think Powell was hawkish, but compared to Walsh, he's practically a dove. Although Walsh also mentioned that tightening is for better rate cuts later on, these two moves are like opposites for the market. At the very least, the super-loose cycle we were expecting is gone. Instead, it’s added a lot of uncertainty to the market. This is probably the real reason why crypto, stocks, and gold all got wrecked over the weekend!