Friday's Markets Update (April 4, 2025)

12 Apr 2025 by rate3

On Friday, the DOW, S&P, and Nasdaq have experienced a decline reminiscent of decades past; oil plunged to a three-year low, and gold dropped sharply as investors sold it to meet margin calls, while BTC and even ETH are not budging. It is unprecedented. Partially, this might be explained by the very high volatility of the USD and gold. This has prompted many traders to diversify into alternative asset groups. However, it might just be a short-term reaction, especially given that Powell explicitly warned the markets about inflation and stated that the Fed will react to Trump's tariffs. Still, BTC being in the green while all the world indexes are in freefall (e.g., the entire Italian market dropped almost 8% in just one day) is a historic event.

The State Of Markets: Absolutely in the red, all the world's markets and almost all major commodities are in deep decline, responding to an overnight revamp of the 80-year-old global trade system. Crypto has historically stood strong.