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Risk-off sentiment is escalating ahead of Tuesday’s market opening, as investors shift towards the dollar and monitor energy markets amid continuing tensions in the Middle East.
(Joa70/Pixabay modified by CoinDesk)
Key points:
- Risk assets are declining, with bitcoin decreasing more than 2.5%, QQQ down 1% in pre-market trading, and crypto-related stocks such as Strategy, Coinbase, and Galaxy Digital falling approximately 2%.
- Defensive strategies are being adopted as the dollar index surpasses 99 and Treasury yields approach 4.1%, while oil remains steady above $74 due to persistent geopolitical issues.
The fourth day of the Middle East conflict is introducing renewed volatility in global markets during Tuesday’s pre-market, indicating a distinct transition to risk-off strategies.
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Bitcoin has decreased 3% in the last 24 hours, falling below $67,000 after briefly reaching $70,000 on Monday. In the equities market, the Invesco QQQ (QQQ) ETF opened the week slightly higher but is now down about 2% in pre-market activity.
Metals are also facing downward pressure. Both gold and silver are experiencing declines, with gold maintaining a position above $5,300 per ounce and silver dropping an additional 4% to approximately $85 per ounce.
In the energy sector, WTI crude oil is trading above $74 per barrel, up 5% over the last 24 hours, approaching Sunday’s futures highs just over $75. Concurrently, the US dollar is strengthening significantly, with the DXY index rising above 99, a level not observed since January 20.
Treasury yields are increasing across the board. The US 10-year yield is firmly above 4% and trending towards 4.1%, indicative of ongoing rate pressures.
Crypto-related stocks are following bitcoin’s downward trend. Strategy (MSTR), the largest publicly traded bitcoin holder, has decreased by 2%. Coinbase (COIN) has dropped 5%, Galaxy Digital is down 3%, and AI-focused miners IREN (IREN) and Cipher Digital (CIFR) are also down by approximately 4%.
