US Consumer Sentiment Plummets After First Reading of Tariff Report, But Cryptocurrency Continues to Show Resilience
Gold hit a new record high as the sell-off in the U.S. dollar and long-term Treasuries continued on Friday.
Authors: Christian Sandor, Helen Brown | Edited by Stephen Alpher Mizin, 11 Apr 2025, 17:02 Published 11 Apr 2025, 16:29 Translated by IA
Here's what:
- Trade tensions between the United States and China and inflation concerns are causing volatility in traditional markets.
- U.S. consumer sentiment has fallen sharply and inflation expectations have reached their highest level since 1981, according to a University of Michigan survey released Friday.
- Investors are dumping U.S. government bonds and dollars, while gold and cryptocurrencies are showing gains. Bitcoin has increased by 4% to $82,000, while major altcoins SOL and AVAX have shown even more significant gains.
Traditional US assets are losing ground as US-China trade tensions continue to roil global markets and new data shows worsening economic sentiment and growing inflation concerns.
Consumer sentiment fell to 50.8 from 57.0, near its lowest in three years and well below the Covid shutdown in 2020, according to the latest University of Michigan survey released Friday. Inflation expectations for the year ahead rose to 6.7% from 5% the previous month, the highest since 1981.
The data prompted investors to resume dumping long-term U.S. government bonds and dollars, two assets traditionally seen as safe havens. The yield on 10-year Treasuries jumped above 4.55% in the morning hours in the U.S., up more than 50 basis points in just a week. Meanwhile, the dollar index (DXY) fell below 100 to a three-year low. Gold, meanwhile, set a new record at $3,240 an ounce.
After a highly volatile recent session, U.S. stocks traded in a much tighter range, flat on Friday. The Nasdaq was up 0.6% at press time.
Meanwhile, crypto markets were on the rise, with Bitcoin (BTC) holding just above $82,000, up 4% in the last 24 hours. The CoinDesk 20 broad market index rose 3%, with major altcoins Solana's SOL and Avalanche's AVAX leading the way with gains of 6%.
Signal or noise?
While some macroeconomic analysts are expressing concerns that the recent rise in government bond yields could threaten the future economic outlook for the U.S., others believe investors are focusing too much on short-term market swings.
“The US dollar and US government debt, two of the most liquid safe haven asset classes, are losing traction,” Noelle Atchison, an analyst and author of the Crypto is Macro Now newsletter, wrote in a note Friday. “However, this only affects assets directly linked to the US, and other safe havens are unaffected.”
“I believe the recent sharp moves in these asset classes are likely due to the fact that
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