Treasury Yields Drop Amid Market Turmoil, Raising Hopes for Crypto Recovery

Crypto markets are under pressure due to a speculative bubble in memecoins and a risk-off sentiment in traditional finance. The U.S. stock market has retreated significantly, influenced by new tariffs imposed by President Trump, including 25% levies on goods from Mexico and Canada and additional taxes on Chinese imports.

The Nasdaq fell 2.6% and is now below pre-election levels.
Treasury Secretary Scott Bessent announced intentions to lower interest rates.
The 10-year Treasury yield decreased to 4.13% from 4.80% since the Trump inauguration.
Market expectations for Fed rate cuts in 2025 have increased, with a 47% chance of at least one cut by May.
The likelihood of two or more cuts by June rose to 36% from 15% a week prior.
Current inflation stands at 3% year-over-year, complicating potential rate cuts.

The Federal Reserve faces challenges in balancing economic support while managing inflation risks.