After an insanely shaky 10 days of stretching, have we finally reached the point of market stability? The Crypto market seems to think so with Bitcoin (Cryptography: BTC) ETEREUM’s 1pm increase by 5.2% over the last 24 hours (Encryption: ETH) Increased by 4.6%, Dogecoin (Cryptography: Doge) A rise of 5.3%.
The stock market is also winning things that it thinks it hopes bond yields and a fall in dollars will lead to finding a way out of the currently unfolding trade war.
Investors are taking on a “risk” mentality over the weekend. This often happens when trade consultations and news of transactions occur while markets are closed.
It’s not clear if there’s a trade or not, and last weekend was unusually quiet, which is part of why stocks are moving higher than they are today. As often as cryptocurrencies continue, but pops of value can be short-lived.
We are beginning to acquire early indications of how consumers and businesses view tariff plans, and early data is not good. University of Michigan’s research on consumer sentiment fell to 50.8 from 57.0 a month ago.
Expectations for inflation jumped to 6.7%, the highest in over 40 years, from 5% a month ago.
Usually, weak consumer sentiment and high expectations of inflation help investors escape safely, but today’s opposition is happening.
What’s interesting about where Crypto is is that it’s one asset class that trades 24/7. So, while stock investors may be preparing for Monday, crypto traders will see the impact of trading and trading shortages over the weekend. It can be a very unstable transaction.
Whether it’s the stock market or the crypto market, it’s almost impossible to predict what will happen next.
My worries about the crypto market are that the economy in the US will slow down and expand to dangerous assets like cryptocurrencies. Economists have increased the chance of a recession in 2025, and there is likely one of us already.
There will also be a rush of revenue data over the coming weeks as both companies reveal what happened in the first quarter and look at the rest of 2025. If that outlook is weak, stocks and codes may fall.
Consumer sentiment is most worrying when combined with rising interest rates over the past week. If both of these trends continue, the recession could be a self-fulfilling prophecy.
The story continues