[Bitop Review] Stocks, Bonds, and Bitcoin Crash: Extreme Fear Grips Markets as Tariffs Loom

The S&P 500 index rose 4% in early trading, but closed down 1.57% after the White House announced it would push forward with tariffs on China. The bond market also experienced significant volatility, with the 30-year U.S. Treasury yield surging to its largest two-day gain in five years, and the 10-year Treasury yield climbing back to around 4.3%. Bitcoin, which hit a high of 80,000 last night, fell sharply, dropping below 75K at one point, and was reported at $75,596 as of the deadline. The Fear and Greed Index plunged to an "extreme fear" level of 15, with nearly $400 million liquidated across the network.

Fear Takes Over: Volatility Soars, Dragging Stocks and Bonds Down

The S&P 500 index surged 4% in early trading—the biggest gain since 2022—amid signs that Trump was willing to negotiate trade deals. However, it reversed course after the White House signaled it would continue tit-for-tat retaliatory measures against China. The market panic index, VIX, spiked significantly after an initial pullback, closing at its highest level since the pandemic began.

U.S. Treasury yields, after a dizzying surge on Monday, dropped sharply again before the 30-year yield spiked in late trading, marking its largest two-day increase in five years. This came as weak debt auctions raised concerns among overseas investors about a potential buyer strike. In the forex market, speculators rushed to buy the Japanese yen and Swiss franc—two safe-haven currencies during times of crisis.

Gold bull Peter Schiff remarked:

Fear index drops to "extreme fear" 15, nearly $400 million liquidated across the network

According to CoinMarketCap data, the current market fear index has fallen to 15, matching its historical low. The Alternative Fear Index dropped to 18, a new low since March 4, while CoinGlass’s index fell to 18, the lowest since February 27.

CoinGlass data shows that over the past 24 hours, $390 million was liquidated across the network, with $296 million from long positions, affecting 134,000 traders. While the figures suggest some easing, total open interest across the network has declined 2.38% since yesterday, signaling poor liquidity. Many retail investors may now be in a state of panicked helplessness or have already been wiped out.

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.