Wall Street traders are tuning out President Trump's global tariff war threats. Stocks, bonds hold, and crypto traders remain calm.
Market Resilience
Despite Trump's reciprocal tariff threats, the S&P 500 climbed 1.5%, near record highs. 10-year Treasury yields dropped for the fifth week in a row, while junk bond ETFs rallied. Bank of America's Market Risk indicator went negative, indicating no panic among investors.
Challenges in the Crypto Market
Bitcoin's realized volatility has sharply fallen, historically signaling explosive price action. According to CryptoQuant, even a small capital shift from stocks to Bitcoin could push BTC above $105,000. Meanwhile, over 600,000 new cryptos were launched in January 2025, a 12x year-over-year increase. This surge is driven by the Pump.Fun platform, but stretches liquidity thin, keeping altcoins from their 2021 highs.
Mixed Signals from the Crypto Market
Spot Bitcoin ETFs in the US have seen $651 million in outflows, risking a drop below $95,000. Nonetheless, large corporations are increasing their Bitcoin holdings, and retail investors are acquiring more crypto. However, Google search interest in Bitcoin has declined sharply since peaking in November 2024.
Traders remain calm in the face of Trump's threats, continuing to invest in various assets including cryptocurrencies. Yet, mixed signals from the crypto market warrant caution.
