Federal Reserve Commits to Stabilizing Financial Markets, U.S. Stocks Achieve Best Performance in a Week, BTC Recovers to 83K
The Turbulent Week Finally Ends!
U.S. President Donald Trump’s rapidly changing trade policies have not only shaken the global economy but also threatened the United States’ status as a safe haven in the world. However, Federal Reserve official Susan Collins stated that the central bank is prepared to help stabilize the market if necessary, leading to a reversal of earlier losses in U.S. stocks and achieving the best weekly performance since 2023.
Market Turmoil, Federal Reserve Vows to Stabilize Financial Markets
The terms “uncertainty,” “unknown,” and “turmoil” appeared repeatedly during the earnings call of the three largest U.S. banks that began on Friday. JPMorgan Chase CEO Jamie Dimon indicated that he expects “chaos” in the bond market, prompting the Federal Reserve to intervene. Meanwhile, Boston Fed President Susan Collins told the Financial Times that the Federal Reserve “will absolutely be ready” to help stabilize financial markets. She noted that the market is currently functioning well overall, with no liquidity issues.
Funds Flowing Out of the U.S., Yen Surges to 142, Gold Breaks 3,200 to Set New Highs
According to the latest MLIV Pulse survey, despite President Trump halting widespread tariffs, investors still prefer to avoid U.S. assets in favor of Europe and other developed markets. The tariffs and resulting market turmoil are transforming American exceptionalism into “U.S. repudiation.” Although the selling of U.S. Treasuries eased on Friday, the benchmark 10-year yield has risen by half a percentage point over the past five days, reaching 4.49%. The U.S. dollar, which has traditionally been viewed as a safe haven, also faced selling pressure as investors turned to the yen, Swiss franc, and gold. The dollar fell to 142.048 against the yen, nearing the low point of the yen’s carry trade unwinding from last September. Meanwhile, spot gold hit a new historical high, reaching $3,237.
Cryptocurrency Rises, Bitcoin Returns to 83K
Cryptocurrency prices rose alongside U.S. stocks, with Bitcoin reaching as high as $84,300 last night, before closing at $83,441, marking a nearly 5% increase over 24 hours. Ethereum rose 3% to $1,566. Arthur Hayes, founder of BitMEX, pointed out that the U.S. 10-year yield remains high, and if this continues, there will be more policy responses this weekend. We are about to enter UP ONLY mode!
It’s on like donkey kong. We will be getting more policy response this weekend if this keeps up. We are about to enter UP ONLY mode for $BTC.
pic.twitter.com/KL3OSYfiMc — Arthur Hayes (@CryptoHayes) April 11, 2025
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