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Is Bitcoin‘s Big Moment Over? 💔

Financial markets are basically throwing a tantrum right now. Uncertainty is at an all-time high, like, have we all collectively lost our minds? On Feb. 25, the US basically said, “Sure, we’ll borrow another $4 trillion” 🙄, raising the debt ceiling from $36.1 trillion to $40.1 trillion. Not exactly the most reassuring news.

And wouldn’t you know it, the benchmark 10-year Treasury yield, like a good little drama queen, dropped from 4.4% to 4.29%. Markets, bless their little hearts, seem to think this whole debt ceiling business is a stabilizing event. Even though, you know, it means we’re borrowing even more money…

But the stock and crypto markets? They’re having a meltdown. Since Feb. 21, the S&P 500 has lost 3%, the Nasdaq100 has dropped 5%, and Bitcoin, well, let’s just say it’s feeling the Trump-pump hangover. Officially 26% below its all-time high, which, remember, was reached on Trump’s Inauguration Day 😂. Talk about a comedown.

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It’s not exactly normal for stocks and bond yields to go down at the same time, is it? It’s basically like a bad breakup where everyone’s crying and also eating ice cream. It suggests that people are freaking out about economic doom and gloom.

Economic Uncertainty: The Party’s Over 🎉

Recent US economic data is sending out some seriously bad vibes. The University of Michigan’s consumer sentiment index fell to 64.7 in February, down from 71.7 in January. This is the lowest level since… well, November 2023. Not exactly a ringing endorsement of the economy.

Existing home sales dropped 4.9%, and the S&P Global Purchasing Managers’ Index (PMI) fell from 52.7 in January to 50.4, the lowest since Sept. 2023. Basically, everything is stagnating like a forgotten bowl of soup.

And to top it all off, there are trade wars brewing. Trump’s threatening tariffs on Canada and Mexico, and he’s also going after the EU and China. It’s like a global game of chicken, and nobody wants to be the one to swerve first.

Read moreBitcoin halving could be a ‘sell-the-news’ event, at least for a few months

Chris Rupkey, Chief Economist at FWDBonds, summed it up perfectly:

“The economy is about to have the rug pulled out from under it as Washington policies are causing a rapid loss of confidence on the part of consumers.”

He continued, “The economy is coming in for a crash landing this year. Bet on it. The bond market is.” Harsh, but probably right.

Meanwhile, the Fear & Greed Index in the crypto market has plummeted to 10, which is basically the “I want to hide under my blanket and eat all the chocolate” level of fear.

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2025-02-28 23:40