According to data observed from 4E, former President Trump once again strongly criticized Fed Chairman Jerome Powell and issued a threat about the independence of the Federal Reserve. This raised concerns about the credibility of the USD and the risk of an economic recession in the US. In the early trading session of the week, US stocks experienced a "Black Monday" as all three major indices plummeted: Dow Jones dropped 2.48%, Nasdaq lost 2.55%, and S&P 500 declined 2.36%. The technology stock group severely declined, with Tesla losing over 5%, Nvidia dropping over 4%, and the total market capitalization of the "7 tech giants" evaporating 404.6 billion USD.
The cryptocurrency market diverged from the stock market trend and moved against growth. From the beginning of yesterday's session, Bitcoin continuously increased in price. In the evening, Strategy announced spending 556 million USD to buy an additional 6,556 BTC at an average price of 84,785 USD, helping to consolidate market sentiment. Despite US stocks plummeting, Bitcoin remained stable at 87,000 USD. This morning, Bitcoin continued to surge strongly, reaching a peak of 88,877 USD – the highest in a month, recording a 1.42% increase in 24 hours. However, Bitcoin is "draining" the altcoin market: Ethereum dropped below 1,600 USD, decreasing 3%; SOL is at 138.75 USD, falling 1.72% in the past 24 hours.
In the foreign exchange and commodity markets, the USD index plummeted 0.94% to near 98 – the lowest in 16 months; WTI oil price dropped 2.06%; meanwhile, spot gold surged 2.90%, setting a new high.
Trump's continuous attacks on the Fed deeply worried investors. Low interest rates might be good for stocks in the short term, but if the Fed's independence is compromised, the long-term ability to control inflation will weaken, threatening the USD's position as the world's top safe-haven asset and shaking the foundation of the US economy. The market is extremely cautious, and the sentiment of seeking safe-haven assets is increasing.
eeee.com – a financial trading platform supporting diverse assets such as cryptocurrencies, stock indices, gold, and foreign exchange – recently launched a USDT investment product with up to 8% annual interest, offering a potential safe-haven option for investors. 4E reminds you to pay attention to market volatility risks and allocate assets reasonably.
