Last week wrapped up with buzzwords like “decoupling” and “safe haven” thrown around, as bitcoin (BTC) hovered around $111,324.27, seemingly standing resilient amid the relentless sell-off in equities triggered by President Trump’s aggressive tariff moves against U.S. trade allies.
Yet, it looks like the bitcoin optimists might’ve jumped the gun.
Weekend Woes: Cryptos Bear the Brunt as Stocks Take a Breather
With stock markets taking a weekend pause, jittery traders shifted gears to the nonstop crypto arena, placing bets that skewed decisively bearish. By late Sunday afternoon, bitcoin was flirting just above $79,000, marking a 5% dip compared to the prior day. As evening rolled in and futures for stock indices kicked off trading, the Nasdaq 100 tumbled roughly 5%, the S&P 500 followed with a 4.5% decline, and bitcoin slid further to a trough near $78,400.
Altcoins Face Steeper Declines
The broader crypto landscape fared even worse — ether (ETH) plunged roughly 11% to hit $1,590, while solana (SOL) dropped about 10%, settling near $107.
Historical echoes reverberate loudly as “Black Monday” trends across social media platform X, calling to mind October 19, 1987. On that infamous day, the Dow Jones Industrial Average shuttered nearly 25% in a single trading session. The catalyst back then? An impending currency war, sparked by Secretary of the Treasury James Baker’s warnings.
Warnings from Wall Street Titans
Hedge fund luminary Bill Ackman, once a tempered supporter of President Trump, voiced grave concerns on Twitter: “If economic nuclear warfare is waged against every nation, business investment grinds to a halt, consumers slam shut their wallets, and America’s global standing suffers damage that might take years—if not decades—to mend.”
He urged the President to “call a timeout on Monday,” urging a moment to strategize an overhaul of tariff policies he deems unjust. Otherwise, Ackman warns, the U.S. could be barreling toward a self-inflicted economic nuclear winter, prompting all to brace for hardship.
Bond Market Snapshot
The 10-year Treasury yield retreated 14 basis points from Friday’s close, settling near 3.85%.
Market update as of 22:05 UTC: Early trading data from stocks and bond markets has been appended.
Quick Facts:
- Bitcoin’s peak in late April 2024 stood above $111,000 before recent volatility.
- Ether reached highs near $2,000 earlier this year.
- Historical “Black Monday” drop in 1987 saw the Dow lose 22.6% in a single day.
