PANews March 11 news, Singapore crypto investment institution QCP Capital published today that the optimism after Trump's victory quickly reversed, and the US stock market continued its downward trend. The S&P 500 and Nasdaq indexes plummeted 2.7% and 3.8%, respectively. The market value of the Magnificent 7 in the US stock market evaporated by more than $830 billion, setting the largest single-day drop in the history of these stocks. Bearish sentiment is now in full swing, and the volume of US stock put options has soared to the highest level since 2020. What is the latest catalyst? Trump was interviewed by Fox News over the weekend, in which he seemed indifferent to the risk of a recession. Although he is known as the "stock market president", he said that an economic downturn may be necessary to "fix" the United States.
In the cryptocurrency market, Bitcoin once again served as a pressure valve and a key leading indicator for risk assets. Bitcoin prices briefly fell below $80,000 as the market rushed to buy put protection. However, early Asian trading today showed unexpected demand for longer-dated call options, which could signal a quick rebound from the pre-election support level of $75,000. Despite the market volatility, not all signals are bearish. This wave of risk aversion has pushed the 10-year Treasury yield down by about 60 basis points and weakened the US dollar - a historically positive factor for dollar-denominated risk assets such as US stocks and cryptocurrencies. Lower yields also provide a breather for the US government, reducing borrowing costs during a period of huge refinancing needs. The change comes at a critical time as Trump's policy roadmap, especially the proposed tax cuts and a more expansionary fiscal policy stance, is gradually taking shape.
