The U.S. stock market opened with the Dow Jones plummeting more than 500 points, treasury yields soaring, gold hitting a new high, and Bitcoin correlating with the U.S. stock market facing a correction.
On Tuesday (September 3), U.S. stocks opened with a big dump, with the Dow Jones falling more than 500 points, and all three major indices down over 1%. The market is worried about the outlook for tariff policies and the tense relationship between Trump and the Fed, leading to a surge in safe-haven sentiment that drove bond yields skyrocketing and gold reaching a historical high of $3508 per ounce. Crypto Assets moved in tandem with U.S. stocks, with Bitcoin under pressure below the key resistance level of $110,000. However, on-chain data shows that the current pullback is a healthy correction in the bull run and is approaching an Oversold state, with the long-term bullish pattern unchanged.
US stocks plummet across the board, fears of tariffs and disputes with the Fed trigger panic
Wall Street began the shortened trading week for Labor Day with a big dump. The Dow Jones Industrial Average opened with a sharp decline of over 500 points, down 1.1%; the S&P 500 index fell 1.2%; the tech-heavy Nasdaq Composite Index led the market down with a drop of about 1.4%, continuing the weak trend from the end of last week. This big dump is mainly due to two uncertainties: first, the federal appeals court ruled that most of the "reciprocal tariffs" implemented by Trump's former administration are unconstitutional, and this matter may be appealed to the Supreme Court, with the market closely watching the "Plan B" claimed by the Trump administration; second, the public dispute between President Trump and the Fed has escalated, raising concerns about the independence of the central bank, especially regarding the progress of the decision on the "removal" of Fed Governor Lisa Cook.
Safe-Haven Assets Stir: Treasury Yields Soar, Gold Hits All-Time High
The surge in risk aversion has driven funds into traditional safe-haven assets. The yield on the 30-year U.S. Treasury bond has jumped significantly to 4.98%, while the benchmark 10-year Treasury yield has also risen to around 4.3%. Meanwhile, gold prices have surged strongly, reaching a historic high of $3,508 per ounce, breaking through the previous high from April this year. The sharp rise in gold is due to the market's repricing of interest rate cut expectations. Following Fed Chairman Powell's indication of the possibility of a rate cut at the Jackson Hole meeting in August, investor expectations for a rate cut in September have significantly increased.
Bitcoin is adjusting in tandem with traditional markets, on-chain data reveals that the bull run has not changed.
(BTC price has pulled back from its historical high | Source: CryptoQuant)
The Crypto Assets market shows a high degree of correlation with traditional markets. Bitcoin's price struggles below the key psychological level of 110,000 USD, while Ethereum has also retraced its recent gains, although the trend of companies allocating Crypto Assets to their treasury continues to strengthen. However, on-chain data analysis indicates that this pullback is indeed healthy. CryptoQuant analyst Darkfost pointed out that after hitting a historical high of 123,000 USD, Bitcoin retraced about 12% within two weeks, which is entirely within the normal historical correction range. He emphasized that since breaking the previous high in March 2024, Bitcoin has experienced a pullback of up to 28%, and the current trend is not unusual, with the bullish pattern expected to continue.
Multiple indicators show that Bitcoin is approaching an Oversold state, with prices repeatedly finding support around the $107,000 level instead of effectively breaking down. Quantitative investor Frank pointed out: "The short-term holder MVRV Bollinger Bands have officially signaled an Oversold condition." This signal has only appeared three times in the past two years: the first was during the closure of the yen interest rate differential trade in August 2024, the second was during the escalation of the U.S. tariff war in April this year, and the third is this current pullback. Crypto analyst Bitcoin Vector assesses that $110,000 has become a strong resistance level in the current adjustment, causing Bitcoin to be stuck in a range-bound fluctuation. He believes that downward pressure is weakening, and if the daily closing price can break through $111,000, the upward momentum is expected to return.
This Week's Market Focus: Non-Farm Payroll Report Sets the Tone
In this week's brief trading schedule, market attention has completely shifted to the U.S. August non-farm payroll report to be released on Friday. Before that, investors need to digest a series of key data including manufacturing PMI, JOLTS job vacancies, and ADP private employment figures. This data will significantly influence market expectations for the Fed's September interest rate meeting, thus determining the next direction for U.S. stocks, gold, and Crypto Assets.
Conclusion
The market has fallen into a risk-averse mode under the dual pressure of tariff war concerns and the independence of Fed policies. Traditional safe-haven assets like gold and government bonds benefit, while risk assets such as U.S. stocks and Crypto Assets are under pressure. However, the on-chain fundamentals of Bitcoin remain healthy, and the current pullback is seen as a normal phenomenon in a bull run, providing entry opportunities for long-term investors. All eyes are focused on Friday's non-farm report, which may become a key turning point in determining market sentiment for the third quarter.
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The U.S. stock market opened with the Dow Jones plummeting more than 500 points, treasury yields soaring, gold hitting a new high, and Bitcoin correlating with the U.S. stock market facing a correction.
On Tuesday (September 3), U.S. stocks opened with a big dump, with the Dow Jones falling more than 500 points, and all three major indices down over 1%. The market is worried about the outlook for tariff policies and the tense relationship between Trump and the Fed, leading to a surge in safe-haven sentiment that drove bond yields skyrocketing and gold reaching a historical high of $3508 per ounce. Crypto Assets moved in tandem with U.S. stocks, with Bitcoin under pressure below the key resistance level of $110,000. However, on-chain data shows that the current pullback is a healthy correction in the bull run and is approaching an Oversold state, with the long-term bullish pattern unchanged.
US stocks plummet across the board, fears of tariffs and disputes with the Fed trigger panic
Wall Street began the shortened trading week for Labor Day with a big dump. The Dow Jones Industrial Average opened with a sharp decline of over 500 points, down 1.1%; the S&P 500 index fell 1.2%; the tech-heavy Nasdaq Composite Index led the market down with a drop of about 1.4%, continuing the weak trend from the end of last week. This big dump is mainly due to two uncertainties: first, the federal appeals court ruled that most of the "reciprocal tariffs" implemented by Trump's former administration are unconstitutional, and this matter may be appealed to the Supreme Court, with the market closely watching the "Plan B" claimed by the Trump administration; second, the public dispute between President Trump and the Fed has escalated, raising concerns about the independence of the central bank, especially regarding the progress of the decision on the "removal" of Fed Governor Lisa Cook.
Safe-Haven Assets Stir: Treasury Yields Soar, Gold Hits All-Time High
The surge in risk aversion has driven funds into traditional safe-haven assets. The yield on the 30-year U.S. Treasury bond has jumped significantly to 4.98%, while the benchmark 10-year Treasury yield has also risen to around 4.3%. Meanwhile, gold prices have surged strongly, reaching a historic high of $3,508 per ounce, breaking through the previous high from April this year. The sharp rise in gold is due to the market's repricing of interest rate cut expectations. Following Fed Chairman Powell's indication of the possibility of a rate cut at the Jackson Hole meeting in August, investor expectations for a rate cut in September have significantly increased.
Bitcoin is adjusting in tandem with traditional markets, on-chain data reveals that the bull run has not changed.
(BTC price has pulled back from its historical high | Source: CryptoQuant)
The Crypto Assets market shows a high degree of correlation with traditional markets. Bitcoin's price struggles below the key psychological level of 110,000 USD, while Ethereum has also retraced its recent gains, although the trend of companies allocating Crypto Assets to their treasury continues to strengthen. However, on-chain data analysis indicates that this pullback is indeed healthy. CryptoQuant analyst Darkfost pointed out that after hitting a historical high of 123,000 USD, Bitcoin retraced about 12% within two weeks, which is entirely within the normal historical correction range. He emphasized that since breaking the previous high in March 2024, Bitcoin has experienced a pullback of up to 28%, and the current trend is not unusual, with the bullish pattern expected to continue.
Bitcoin Approaches Oversold Area, Key Resistance Level Becomes Breakthrough Focus
Multiple indicators show that Bitcoin is approaching an Oversold state, with prices repeatedly finding support around the $107,000 level instead of effectively breaking down. Quantitative investor Frank pointed out: "The short-term holder MVRV Bollinger Bands have officially signaled an Oversold condition." This signal has only appeared three times in the past two years: the first was during the closure of the yen interest rate differential trade in August 2024, the second was during the escalation of the U.S. tariff war in April this year, and the third is this current pullback. Crypto analyst Bitcoin Vector assesses that $110,000 has become a strong resistance level in the current adjustment, causing Bitcoin to be stuck in a range-bound fluctuation. He believes that downward pressure is weakening, and if the daily closing price can break through $111,000, the upward momentum is expected to return.
This Week's Market Focus: Non-Farm Payroll Report Sets the Tone
In this week's brief trading schedule, market attention has completely shifted to the U.S. August non-farm payroll report to be released on Friday. Before that, investors need to digest a series of key data including manufacturing PMI, JOLTS job vacancies, and ADP private employment figures. This data will significantly influence market expectations for the Fed's September interest rate meeting, thus determining the next direction for U.S. stocks, gold, and Crypto Assets.
Conclusion
The market has fallen into a risk-averse mode under the dual pressure of tariff war concerns and the independence of Fed policies. Traditional safe-haven assets like gold and government bonds benefit, while risk assets such as U.S. stocks and Crypto Assets are under pressure. However, the on-chain fundamentals of Bitcoin remain healthy, and the current pullback is seen as a normal phenomenon in a bull run, providing entry opportunities for long-term investors. All eyes are focused on Friday's non-farm report, which may become a key turning point in determining market sentiment for the third quarter.