The Fed kept the federal funds rate unchanged at 3.50%-3.75% as expected, but three committee members voted against, advocating for a 25 basis point hike, reflecting growing internal concerns about inflation. This decision directly caused long-term U.S. Treasury yields to surge sharply (30-year yield broke 5.2%, hitting the highest level since 2007), and U.S. stocks plummeted in response, leading to a double whammy for both stocks and bonds. In the long run, this drop coincides with the recent escalation in Middle East tensions and the continued sell-off in AI/chip stocks, clearing out risks. The macro risks that have been accumulating recently are significant, and popular Korean and U.S. stocks are struggling to sustain their upward momentum, with funds almost entirely flowing into chip stocks. Cryptocurrencies are more resilient than expected, but there’s no sign of funds flowing back into crypto. It’s still too early to think about a crypto bull market—keep selling Calls!