From Yahoo Finance: 2025-04-03 08:30:00

The financial markets saw a sharp sell-off due to inflation and trade concerns, with Wall Street struggling and stocks tumbling. The Dow fell 1.6%, the S&P 500 dropped 2%, and the Nasdaq led with a 2.7% loss, impacting major tech stocks like Apple, Microsoft, and Amazon.

The sell-off was partly triggered by a higher-than-expected inflation report, showing core inflation rising 0.4% month-over-month and 2.8% year-over-year. U.S. consumer sentiment hit a low, and trade tensions escalated, with concerns over slowing economic growth.

Market-wide, the S&P 500 fell 1.87%, the Nasdaq dropped 2.51%, and the Dow slipped 1.62%. Interest rate futures suggest a 76% chance of a 25 basis point rate cut by June. Bitcoin faced downward pressure amid the market downturn, reflecting broader risk-off sentiment among investors.

Bitcoin’s ability to hold key levels will be crucial, historically showing resilience after equity corrections. It has traded with risk-on markets but was created as a decentralized response to the financial crisis. The question remains if Bitcoin can act as a true hedge in times of economic uncertainty.

Bitcoin has shown strength compared to the stock market during the downturn, but further decline is possible. If equities struggle, Bitcoin may follow the trend historically seen. Monitoring support levels and market structure will be key during this volatile period.

Read more: As Wall Street Sells Off, Is Bitcoin Showing Strength for the Weeks Ahead?