A tumultuous week has finally come to an end! US President Trump's rapidly changing trade policies not only shook the global economy but also threatened the United States' position as a global safe haven. However, Federal Reserve official Susan Collins stated that the central bank is prepared to help stabilize the market if necessary, and US stocks reversed previous declines, achieving the best performance since 2023.
Table of Contents
ToggleMarket Chaos, Federal Reserve Vows to Stabilize Financial Markets
"Uncertainty," "Unknown," and "Volatility" repeatedly appeared in the earnings conference calls of the three largest US banks starting on Friday. JPMorgan CEO Dimon (Jamie Dimon) stated that he expects the Treasury market to experience "chaos," prompting the Federal Reserve to intervene.
Boston Federal Reserve President Susan Collins told the Financial Times that the Federal Reserve is "absolutely prepared" to help stabilize financial markets. She noted that the market is currently functioning well, and there are no overall liquidity issues.
Capital Fleeing the US, Yen Rises to 142, Gold Breaks 3,200 to New High
According to the latest MLIV Pulse survey, despite President Trump's temporary suspension of broad tariffs, investors still tend to avoid US assets and favor European and other developed markets.
Tariffs and the resulting market volatility are transforming US exceptionalism into "US repudiation". Although the sell-off in US Treasuries eased on Friday, the benchmark 10-year yield rose half a percentage point over the past five days to 4.49%. The US dollar, traditionally seen as a safe haven, was also sold off, with investors turning to the yen, Swiss franc, and gold. The dollar-yen exchange rate briefly dropped to 142.048, close to the low point of the yen carry trade liquidation last September. Gold spot prices reached a new all-time high of $3,237.
Cryptocurrencies Rise, Bitcoin Returns to 83K
Cryptocurrencies rose with US stocks, with Bitcoin briefly reaching $84,300 last night, trading at $83,441 before the deadline, with a 24-hour gain of nearly 5%. Ethereum rose 3% to $1,566.
BitMEX founder Arthur Hayes noted that the US 10-year yield remains at its peak, and if this continues, there will be more policy responses this weekend. We are about to enter UP ONLY mode!
It's on like donkey kong. We will be getting more policy response this weekend if this keeps up. We are about to enter UP ONLY mode for $BTC. pic.twitter.com/KL3OSYfiMc
— Arthur Hayes (@CryptoHayes) April 11, 2025
Risk Warning
Cryptocurrency investments carry high risk, and prices may fluctuate dramatically. You may lose all of your principal. Please carefully assess the risks.
