On April 21 – Easter Monday – markets across the board made major moves, with stocks generally trading lower, while cryptocurrencies and gold surged.
Indeed, U.S. stocks erased $1.5 trillion from their cumulative market capitalization during the day, with all major indices ending the session in the red.
The S&P 500, for example, fell 2.38% from 5,282.70 points to 5,158.20 points, and the Nasdaq 100 dropped 2.46% from 18,258 to 17,808.
Simultaneously, the Dow Jones Industrial Average (DJIA) crashed 2.48% as it started the session at 39,142 and ended it at 38,170. The small-cap-oriented Russell 2000 also fell 2.14% to 1,840, down from 1,880.
Cryptocurrencies soar as stock market crashes
Elsewhere, cryptocurrencies once again broke from their previous pattern of following equity as the total digital assets valuation rose from $2.67 trillion to $2.73 trillion, adding approximately $60 billion on Monday, April 21, per the data FInbold retrieved from TradingView on April 22.
Though multiple altcoins recorded a rally within the 24-hour time frame, and a part of the overall rise can be attributed to the strong performance of major meme coins such as Fartcoin (FARTCOIN) and Dogecoin (DOGE), the majority of the rise is owed to Bitcoin (BTC).
The world’s premier cryptocurrency seemingly broke with its previous tendencies that saw it plunge as low as $75,000 on stock market headwinds as BTC rose 1.16% in the last 24 hours and is, at press time, changing hands at $88,524.
Why U.S. stocks crashed on April 21
The market dynamic can primarily be linked to the prevailing macroeconomic uncertainty arising from the escalating trade war.
Although there was much optimism surrounding the reciprocal tariff pause – evidenced by the rally on the false rumor that it would be implemented and by the official announcement a handful of days later – the situation has only deteriorated since.
Not only has the Trump administration yet to unveil the results of its claimed negotiations with various countries, but Japan has already signaled that there are concessions it would not make, and China has continuously been increasing pressure with a series of proclamations and measures.
As the major U.S. companies are overwhelmingly reliant on global supply chains and international markets, the causes for the stock market bloodbath are rather self-evident.
Similarly, the Trump administration’s tempestuous approach to policy, whether it be the surprise tariffs or calling Fed Chair Jerome Powell mean names when he does not do what the president wants, has ensured a drop in confidence in the American dollar and, thus, a sharp decline in the USD Index.
Why gold and crypto are showing resilience
On the flipside, cryptocurrencies are not under pressure from the same factors – though could still suffer vicariously should traders be left with too little disposable income to invest – and gold, as a traditional safe haven, has been growing increasingly attractive.
Indeed, the world’s largest commodity by market cap has been making history as it, within 48 hours, crossed above $3,400, setting a new all-time high (ATH) only to also soar above $3,500 soon after.
Featured image via Shutterstock
