Bitcoin Booms, Bonds Bust: Tuesday’s Market Reversal Sparks Flight from U.S. Safe Havens

Featured Article this week:

• ETF Inflows & Short Squeeze Fuel Rally: Over $380M poured into U.S. spot Bitcoin ETFs in one day—sparking a +5% surge as short sellers got squeezed and bullish momentum accelerated.

• Market Reversal from Brutal Drop: After plunging 30% from its $109K January high, Bitcoin’s rebound to $90K signals a psychological shift and potential setup for a move toward $100K.

• Institutional Confidence Returns: Despite broader market volatility, Bitcoin’s breakout—alongside Nasdaq gains—signals renewed faith in crypto as decentralized finance regains investor confidence.

• Bitcoin’s $90K Comeback: Turning Point or Temporary Hype?
  As ETF inflows surge and short sellers scramble, Bitcoin is roaring back with institutional muscle behind it. Is this the start of a new leg up toward $100K—or just another crypto head fake? Share your perspective and join the conversation shaping the next chapter of digital finance.

The 'Sell America' Shock: Markets Rethink U.S. Safe Havens

Trump’s Fed feud, surging yields, and a tumbling dollar trigger an investor exodus—gold and Bitcoin steal the spotlight as global confidence wavers.

• 🧨 “Sell America” Trade – 3 Key Takeaways —

  1. Safe Havens Sell Off Amid Political Turmoil:

     • Trump’s criticism of Fed Chair Jerome Powell sparked a sharp drop in both U.S. bonds and the U.S. dollar—a rare move during market uncertainty.

     • 10-year Treasury yield (^TNX) jumped back above 4.4%.

     • U.S. Dollar Index (DX-Y.NYB) fell below 100, its lowest since 2022, breaching a key psychological level.

  2. Investors Shift to Commodities & Crypto:

     • Investors flocked to alternative stores of value:

       • Gold (GC=F)surged to a record high on Tuesday.

       • Bitcoin (BTC-USD) climbed to nearly $91,000, the highest since February.

     • The move reflects a lack of trust in dollar-backed assets and rising global demand for decentralized or hard assets.

  3. Foreign Capital Rotation Away from U.S. Markets:

     • $3.6B in net outflows from U.S. equity ETFs last week.

     • Meanwhile, $3B flowed into developed international markets—a stark shift.

     • Foreign investors hold ~33% of U.S. equities and ~25% of U.S. government debt, but confidence is being shaken by political instability, tariffs, and slowing growth.

Market Snapshot Today:

1. Tech Surge Fuelled by AI & ETF Optimism:

   • Big movers: AAPL (+3.91%), MSFT (+2.18%), NVDA (+2.36%), PLTR (+4.47%)

   • Why: AI optimism and strong Q1 earnings helped lift tech giants. Surge in Bitcoin ETFs also reignited confidence in risk assets and tech.

2. Consumer & Communication Sectors Rally on Market Rebound:

   • Standouts: AMZN (+4.64%), TSLA (+5.75%), META (+3.49%), NFLX (+6.78%)

   • Why: Nasdaq’s 1% gain on “Turnaround Tuesday” boosted high-growth stocks. Investors rotated back into consumer cyclicals and communication services on easing recession fears.

3. RTX (Raytheon) Tanks Amid Defense Scrutiny:

   • RTX: -9.25%

   • Why: Reports surfaced about delays and cost overruns in key defense contracts, sparking investor concerns over profitability and Pentagon audits.

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