Waves of Turmoil Finally End!
The turbulent week has finally come to a close! U.S. President Trump’s rapidly changing trade policies have not only shaken the global economy but also threatened the United States’ position as a safe haven in the world. However, Federal Reserve official Susan Collins stated that the central bank is prepared to help stabilize the markets if necessary, leading U.S. stocks to reverse earlier losses and achieve their best weekly performance since 2023.
Market Chaos, Federal Reserve’s Pledge to Stabilize Financial Markets
Words such as “uncertainty,” “unknown,” and “turmoil” repeatedly emerged during the earnings report meetings of the three largest U.S. banks that began on Friday. Jamie Dimon, CEO of JPMorgan, indicated that he expects “chaos” in the government bond market, prompting Federal Reserve intervention.
Boston Federal Reserve Bank President Susan Collins told the Financial Times that the Federal Reserve “will absolutely be prepared” to help stabilize financial markets. She pointed out that the market is functioning well at present, with no overall liquidity issues.
Funds Flowing Out of the U.S., Yen Surges to 142, Gold Breaks 3,200 to Set New Highs
According to the latest MLIV Pulse survey, despite President Trump suspending broad tariffs, investors continue to shy away from U.S. assets, favoring Europe and other developed markets instead. The tariffs and the ensuing market turbulence are transforming American exceptionalism into “U.S. repudiation.” Although the sell-off of U.S. Treasuries eased on Friday, the benchmark 10-year yield rose half a percentage point over the past five days, reaching 4.49%. The dollar, long viewed as a safe haven, also faced selling pressure as investors turned to the yen, Swiss franc, and gold. The dollar fell to as low as 142.048 against the yen, nearing last September’s low point for yen arbitrage. Meanwhile, spot gold reached a historic new high of $3,237.
Cryptocurrencies Surge, Bitcoin Returns to 83K
Cryptocurrencies rose along with U.S. stocks, with Bitcoin briefly climbing to $84,300 last night and reporting $83,441 before the deadline, marking an increase of nearly 5% within 24 hours. Ethereum rose 3% to $1,566.
BitMEX founder Arthur Hayes pointed out that U.S. 10-year yields remain high, 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
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and their prices can be highly volatile, leading to a potential loss of all principal. Please assess the risks carefully.