While Treasury Secretary Bessent has repeatedly claimed that the Trump administration is indifferent to the stock markets performance, noting that the bottom 50% of Americans, Trumps core constituency, dont own stocks, he has become increasingly concerned as the situation worsens. On Sunday, amid escalating concerns, Bessent flew to Florida to meet with Trump in an effort to convince him to address the stock market turmoil.
The Federal Reserve has postponed its interest rate cuts, and the safe haven properties of the US dollar and government bonds have declined, both falling
The U.S. stock market plummeted by about 20%, and at the same time, the market showed abnormal behavior: not only was the U.S. dollar, a conventional safe-haven asset, weakening, but the bond market, which provides investors with protection against stock declines, also saw a sell-off at the same time.
Markets are deeply concerned about inflationary pressures caused by tariffs. Powell also said in a recent speech that the Fed may temporarily pause its interest rate cuts, emphasizing the need to fully understand the broader economic impacts of these tariffs - which remain uncertain. In the crypto space, BTCs realized volatility has begun to decline, making it more attractive to sell put and call options.
US stocks fell and market value evaporated severely, Trump temporarily suspended interest rate hikes in some countries
Even though the US has had no substantive discussions with any other country (and Japan, South Korea, the UK, and Vietnam may release counter-sanction information in the near future), Trump still announced a 90-day suspension of tariffs on countries that did not retaliate.
The ongoing tariff tensions have caused economic risks to escalate. American consumers will gradually reshape their consumption system in the face of rising living costs, increased investment risks, and more potential economic risks. The suspension of tariffs reflects Trump and Bessant’s concerns about the secondary impact of the stock market decline (nearly $15 trillion in market value has evaporated) and the potential consequences of the continued sell-off of U.S. bonds.
BTC currently has strong support, and reasonable operation of put and call options can explore profit space
BTC has strong support at $73,000. This is also backed up by the actual low of $74,437 in the recent volatile week. Although the risk/reward ratio improves slightly at these levels, a significant parabolic breakout is unlikely. BTC is likely to remain in a wider trading range, making strategies such as selling puts and calls particularly attractive.
Currently, $90,000 is the core upward resistance level for BTC, which is very close to the key 21-week moving average. The 21-week moving average usually determines whether BTC is in a bullish or bearish zone. At the same time, it is beneficial for option sellers during the current period of uncertainty and volatility.
Disclaimer: The market is risky and investment should be cautious. This article does not constitute investment advice. Digital asset trading can be extremely risky and unstable. Investment decisions should be made after carefully considering personal circumstances and consulting financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.
