Global financial markets are going through one of their worst sell-offs since the peak of the COVID-19 crisis in March 2020. Stock futures are crashing, oil prices are sliding, and even gold – usually seen as a safe investment—is dropping. Every major asset class is showing signs of stress.
Now, attention is turning to the cryptocurrency market. The big question is: Can crypto help investors ride out the storm?
Since April 3, the S&P 500 index has fallen by around 7.62%, and the Nasdaq 500 is down 7.30%. In just three days, stock futures dropped at least 15%, according to recent reports.
When major indices fall this sharply, it often points to serious trouble ahead for the economy. Could the world be heading toward another financial crisis?
To understand the bigger picture, let’s look at other key indicators—starting with crude oil. At the beginning of April, WTI Crude Oil was trading at $71.35. It has now dropped by more than 16.62% and is sitting at $59.49—just under the important $60 mark.
Between April 3 and 4 alone, the oil market fell by 11.27%. Falling oil prices often signal a slowdown in economic activity.
Gold is usually considered a safe bet during uncertain times, as investors use it to protect their wealth. But even gold is showing weakness right now.
From April 3 to 4, gold prices fell by over 3.17%. This suggests that investors are starting to question whether gold can really offer protection in the current environment. At the moment, gold is priced at $3,030.505.
US Treasury Bond Futures have risen slightly—from $118.59 at the beginning of the month to $120.59 now, a 1.68% increase.
This move usually happens when investors are looking for safer options, and it often signals that people are worried about where the economy is headed.
A recent report shows that the “Magnificent 7” index—which tracks tech giants like Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—has dropped by 35%.
This major decline shows that investors are stepping away from high-risk sectors, even ones that were once seen as strong and reliable.
The CNN Fear and Greed Index, which considers seven key indicators – S&P market momentum, NYSE stock price strength, NYSE stock price breadth, put and call options, S&P market volatility, and US safe haven demand – sits at 4. This indicates that investors are under extreme fear.
Reports suggest that investor fear is now at the same level as March 2020, when COVID lockdowns started.
The wave of panic is also hitting the crypto market. In the past 24 hours, the entire crypto market has fallen by 11.2%. Bitcoin is down 8.6%, Ethereum by 17.2%, XRP by 16.2%, BNB by 8.7%, Solana by 16.4%, and Dogecoin by 16.9%.
However, if people continue to lose trust in traditional financial systems, crypto could become more attractive as an alternative store of value.
The days ahead will be crucial. Will crypto prove itself as a safe haven during market chaos—or will it be dragged down along with everything else?
One thing is certain: the global market is at a crossroads, and everyone is watching closely.
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