Global financial markets faced a significant downturn on November 21, 2025, as the Federal Reserve's shift towards a more hawkish policy stance rattled investors. The Nasdaq 100 fell 2.4%, while Bitcoin dropped below $86,000, and gold prices also declined. This market reaction was driven by a sharp reduction in the likelihood of a December rate cut, which plummeted from 93.7% to 42.9% following Fed officials' comments. The sell-off was further intensified by growing concerns over AI sector valuations and private credit risks, coupled with weak liquidity in major indices. These factors combined to create a volatile trading environment, leading to widespread losses across various asset classes.