Bitcoin continued its downward spiral, touching $87,806 earlier today — its lowest level in three weeks. Ethereum followed suit, slipping below the $3,000 mark to trade at $2,959, down 7.28% over 24 hours.
Trump Tariff Threats and JGB Volatility Hit Markets
Former US President Donald Trump escalated trade tensions by threatening tariffs against eight NATO countries. Meanwhile, Japan's long-term government bond yields surged, adding to risk-off sentiment. Investors fled risky assets amid fresh fears of a global trade war.
US Indexes Break Below 50-Day Moving Averages
US stocks opened sharply lower on Monday. The S&P 500 fell 143.15 points to 6,796.86 (down 2.06%), the Nasdaq tumbled 561.06 points to 22,954.32 (down 2.39%), and the Dow Jones Industrial Average plunged 870.74 points to 48,488.59 (down 1.76%). The Philadelphia Semiconductor Index dropped 133.22 points (1.68%) to 7,794.19. The VIX volatility index spiked to 20.99, its highest single-day level since October last year.
Tech megacaps were hammered: TSMC ADR fell 4.44%, Nvidia dropped 4.32%, and Tesla lost 4.17%. Crypto-related stocks also suffered — Coinbase closed down 5.57%, Strategy shed 7.76%, and Circle fell 7.52%.
Market sentiment in the near term will hinge on the direction of Trump's tariffs, global investors' appetite for US Treasuries, and whether Bitcoin can hold the $80,000 level.