Core Viewpoint - The recent sell-off in risk assets, particularly cryptocurrencies and tech stocks, is driven by renewed concerns over tech stock valuation bubbles and a significant cooling of expectations for interest rate cuts by the Federal Reserve [1][6][7]. Cryptocurrency Market - Bitcoin and Ethereum have both dropped over 5%, with Bitcoin trading at approximately $87,200 and Ethereum at around $2,853 [2]. - The cryptocurrency market has seen over $831 million in liquidations within 24 hours, affecting 227,000 traders, with long positions accounting for $696 million of the liquidations [2]. - Analysts indicate that Bitcoin's price is currently weak, having fallen below both the 50-day and 200-day moving averages, and the likelihood of Bitcoin dropping below $90,000 by year-end has risen to 50% [3]. - The overall decline in Bitcoin has erased all gains made this year, marking the first annual drop since 2022, with a cumulative decline of over 7% year-to-date [2]. Stock Market Performance - The tech sector has faced significant declines, with major companies like Nvidia and Micron experiencing drops of over 10% and 20% respectively [4]. - The South Korean Composite Index and the Nikkei 225 have both seen substantial declines, with the former down 3.65% and the latter down 2.26% [5]. - SoftBank Group's stock fell nearly 9%, while other tech-related stocks also experienced significant losses [5]. Federal Reserve's Interest Rate Outlook - The Federal Reserve's expectations for interest rate cuts have diminished, with Morgan Stanley no longer predicting a rate cut in December [6]. - Recent employment data showed a significant increase in non-farm payrolls, leading to a reassessment of the economic outlook and a belief that the economy may be more stable than previously thought [6]. - Federal Reserve officials have expressed caution regarding further rate cuts, highlighting ongoing inflation concerns and the potential for asset price adjustments [7].