Crypto Market Sell-Off: What’s Triggering the 4.3% Crash Amid Global Market Chaos?

The post Crypto Market Sell-Off: What’s Triggering the 4.3% Crash Amid Global Market Chaos? appeared first on Coinpedia Fintech News

The so-called “Economic Nuclear War”, triggered by US President Donald Trump

Donald Trump

Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election

President

by introducing an aggressive tariff plan, has contributed to extreme instability in the global market. As of now, none of the top global markets are showing bullish signals, except China. The S&P 500 daily performance index shows -1.57% and the EURO STOXX 50 daily performance index sits at -3.16%.

Likewise, the Nikkei 225 index remains at -3.93%, NIFTY 50 at -0.59%, the ASX 200 at -1.80%. As panic spreads, US government bond yields are rising fast, signalling a flight to safety. However, in the last 24 hours, the crypto market has declined by 4.3%. Here is what one should know. 

Bond Yields Surge as Investors Flee Risk 

At the start of this month, the US 30-year government bonds yield was at 4.581%. At one point on April 4, it touched as low as 4.331%. Currently, it sits at 4.806%. Between April 7 and April 9, it climbed from 4.343% to 4.841%.  

During the same period, the US 20-year government bonds yield grew from 4.367% to 4.897%. The US 10-year government bonds yield surged from 3.897% to 4.352%, and the US 5-year government bonds yield increased from 3.570% to 3.944%

Interestingly, except for the 5-year yield, all the other markets are showing slight bearish signals right now. 

Today, the 30-year yield has dropped from 4.841% to 4.805%, the 20-year yield from 4.897% to 4.845%, and the 10-year yield from 4.352% to 4.335%.   

Meanwhile, the 5-year bonds yield has grown from 3.944% to 3.975%. 

Experts believe that it is too early to say whether it is a sign of a trend shift in the US bond market, which has been absorbing investors since the beginning of the latest market turmoil. 

Crypto Market Reacts: 4.3% Drop in 24 Hours 

In the last 24 hours, the cryptocurrency market has seen a drop of no fewer than 4.3%. Almost all the top cryptos have shown bearishness. During the period, Bitcoin has slipped by over 2.2%, Ethereum by 5.6%, XRP by 2.5%, BNB by 0.1%, Solana by 0.9%, TRON by 2.3% and Dogecoin by 3.6%. 

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At the start of this month, the Bitcoin market was at $82,556.42. On the second day, the market declined from $85,165 to $82,525. On the day when the 30-year bonds yield dropped to the lowest point of the month, the BTC market rebounded to $83,860. However, since April 5, the market has declined by over 7.944%.

Currently, the market is showing bullish signals. Today, it has grown from $76,344 to $77,296.    

In conclusion, the bond market’s rising yields often reflect growing economic uncertainty, pushing investors to seek safety in government securities. This “risk-off” sentiment tends to hurt high-volatility assets like cryptos. However, any shift in bond trends, like the one that is being witnessed now in the larger yield markets, may eventually reverse this pressure, allowing the crypto market to regain momentum.