Global Financial Markets Encounter "Black Monday": Crypto Assets Big Dump, Tariff Policies Raise Concerns

The global financial market experienced a huge shock on Monday. The three major U.S. stock indices continued to decline, and European and Asian stock markets also saw significant drops. The commodity market was not spared either, with both crude oil and gold prices falling. The Crypto Assets market also lost its former resilience, with Bitcoin falling more than 10% within two days, and Ethereum experiencing a big dump of 20%. The entire financial market presented a "green" scene.

The roots of this market turmoil can be traced back to April 2, when the U.S. President signed two executive orders regarding "reciprocal tariffs," announcing a 10% "minimum benchmark tariff" on trade partners and imposing higher tariffs on certain trade partners. This move marked the formal beginning of the reciprocal tariff policy.

In response, multiple countries and regions have successively taken countermeasures. For example, our country announced a 34% tariff on imported goods originating from the United States starting from April 10. These actions have caused the shadow of a global trade war to begin looming over the market.

On April 7, the impact of the tariff turmoil further expanded, and the global financial market experienced an unprecedented big dump. U.S. stock futures continued the big dump trend of last week, with the Nasdaq futures falling over 5% and the S&P 500 futures down more than 4%. European stock index futures also saw significant declines, with the European STOXX 50 futures falling over 4% and the DAX futures approaching a 5% drop. The Asian market also could not escape, as the Japanese and South Korean stock markets collapsed again, with the Korea Composite Stock Price Index opening with a fall of over 4% and the Nikkei 225 index down nearly 2%. The Hong Kong Hang Seng Index closed at 19828 points, down 3021 points for the day, a fall of up to 13.2%, setting a record for the largest single-day drop since October 28, 1997.

The Crypto Assets market has also been severely impacted. Bitcoin fell more than 10% within two days, briefly dropping below $75,000. Other Crypto Assets performed even worse, with Ethereum falling below $1,500 and SOL hitting a low of $100. According to data platform statistics, a total of 487,700 people were liquidated that day, with a liquidation amount exceeding $1.632 billion, of which long positions accounted for $1.25 billion and short positions for $380 million.

This financial storm has sparked market concerns about the possibility of the US economy falling into recession. Many business leaders and economists have stated that the US economy may already be in a severe recession. A survey shows that 69% of business executives expect an economic recession in the US, with more than half believing that the recession will arrive this year.

Despite the overall pessimism in the market, there are also some positive signs. Several countries have begun to take action to rescue the market. For example, our country's national team has increased its holdings in a large number of ETF funds, comprehensively rescuing the market from individual stocks to indices. Countries like Japan and South Korea have also taken corresponding measures, with the Japanese and Korean stock markets opening high across the board the next day.

For the Crypto Assets market, despite suffering heavy losses, some signs of stabilization have emerged. Bitcoin has rebounded to around $80,000, Ethereum has also climbed back above $1,500, and SOL has recovered to around $110. However, market participants still have divergent views on the future direction. Some analysts believe there may still be downside potential for the sell-off, while others think the market may have already hit the bottom.

Overall, the global financial markets are at a critical crossroads. The ultimate direction of tariff policies, adjustments by the Federal Reserve, and the bailout measures of various countries will all have a significant impact on future market trends. Investors need to closely monitor the developments of these factors in order to make informed investment decisions.