S&P 500 Surges in Volatility, Outpacing Bitcoin Amid U.S. Asset Selloff
Wall Street's perception of bitcoin has shifted as President Trump's trade policies reduce the appeal of U.S. assets. Key points include:
- S&P 500's seven-day realized volatility rose from 50% to 169% following Trump's tariff announcement on April 2, marking the highest level since the 2020 coronavirus crash.
- Bitcoin's volatility doubled to 83%, remaining lower than the S&P 500, suggesting it may serve as a low-beta hedge against stocks.
- The S&P 500 declined by 14% in under two months, with similar losses in the Nasdaq and Dow Jones due to heightened trade war fears.
- Investors have sold Treasury notes, causing yields to rise; the 10-year bond yield increased by 62 basis points to 4.45%.
- The dollar index fell to 100, the lowest since late September, reflecting concerns about the U.S. economic outlook.
- Evercore ISI noted that the combination of rising yields and depreciating currency is uncommon for the U.S., indicating diminished growth expectations and reduced interest in dollar assets.