Although Finance Minister Bessent repeatedly claimed that the Trump administration was indifferent to stock market performance and pointed out that Trump's core voters - the bottom 50% of Americans - do not own stocks, he became increasingly worried as the situation worsened. On Sunday, amid escalating concerns, Bessent urgently flew to Florida to meet with Trump, trying to persuade him to address stock market volatility.
Federal Reserve Postpones Rate Cut, US Dollar and Treasury Bonds Decline in "Safe Haven" Attributes
US stock market plummeted by about 20%, and the market showed "abnormal" behavior: not only is the US dollar weakening as a conventional safe-haven asset, but the bond market, which typically provides protection for investors during stock declines, is also experiencing sell-offs.
The market is deeply concerned about inflationary pressures caused by tariffs. Powell also stated in a recent speech that the Federal Reserve mighttemporarily pause rate cuts,emphasizing the need to fully understand the broader economic impacts of these tariffs, which remain uncertain. In the crypto realm, BTC's actual volatility has begun to decrease, making selling put and call options more attractive.
US Stock Market Decline Causes Severe Market Value Evaporation, Trump Temporarily Suspends Tariffs for Some Countries
Despite having no substantive discussions with any other country (and Japan, South Korea, the UK, and Vietnam may soon release counter-sanction information), Trump still announced a 90-day tariff suspension for countries that have not taken retaliatory measures.
Ongoing tariff tensions are causing escalating economic risks. US consumers will gradually reshape their consumption system facing increased living costs, investment risks, and more potential economic risks. The tariff suspension reflects Trump and Bessent's concerns about the secondary effects of stock market decline (with market value nearly evaporated by $15 trillion) and the potential consequences of continued bond sell-offs.
BTC Currently Has Strong Support Level, Rational Put and Call Option Operations Can Explore Profit Spaces
BTC has a strong support level at $73,000. During the recent volatile week, BTC's actual low point of $74,437 also inversely verified this. Although the risk/reward ratio has slightly improved at these levels, the possibility of a significant parabolic breakthrough is low. BTC may remain within a broader trading range, making strategies like selling put and call options particularly attractive.
Currently, $90,000 is BTC's core upward resistance level, very close to the key 21-week moving average. The 21-week moving average typically determines whether BTC is in a bullish or bearish zone. Meanwhile, this period of uncertain volatility is favorable for option sellers.
Disclaimer: Markets are risky, and investments require caution. This article does not constitute investment advice. Digital asset trading may involve significant risks and instability. Investment decisions should be made after carefully considering personal circumstances and consulting financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.
