Global Financial Market Shock: Recession Shadows Loom, Crypto Assets Experience Big Dump

Recently, the global financial markets have experienced severe turbulence. The three major U.S. stock indexes continued to fall, and European and Asian stock markets also plummeted. The commodities market was not spared either, with both crude oil and gold prices declining. The Crypto Assets market has been particularly hard hit, with Bitcoin falling more than 10% in two days, and Ethereum's fall reaching as high as 20%. The entire financial market presents a "green" scene.

The root of this market turmoil can be traced back to an executive order signed by the U.S. President regarding "reciprocal tariffs". The order announces a "minimum baseline tariff" of 10% on trade partners and imposes higher tariffs on certain trade partners. This move has triggered trade frictions globally, with multiple countries taking countermeasures.

Under the influence of tariff policies, the global financial market experienced an epic big dump on April 7. U.S. stock futures continued the trend of last week's big dump, with Nasdaq futures falling over 5% and S&P 500 futures dropping more than 4%. European stock index futures also saw significant declines, with the European STOXX 50 index futures down over 4% and DAX index futures nearly 5% lower. The Asian market was not spared either, with the Japanese and South Korean stock markets collapsing again, and the Hang Seng Index recorded its largest single-day fall since October 28, 1997.

The Crypto Assets market also suffered a heavy blow. The price of Bitcoin briefly fell below $75,000, Ethereum dropped below $1,500, and SOL hit a low of $100. According to data platform statistics, a total of 487,700 people were liquidated that day, with the liquidation amount exceeding $1.632 billion.

In the face of market turmoil, concerns about a global economic recession have once again become the focus. Several economists and business leaders have stated that the U.S. economy may have already fallen into a severe recession. A survey shows that 69% of business executives expect a recession in the U.S., with more than half believing that the recession will arrive this year.

Analysts believe that the purpose of this tariff policy includes reversing trade imbalances, increasing fiscal revenue, and serving as a means of diplomatic negotiation. However, it currently seems that the negative impacts have exceeded expectations. The tariff policy has not only affected global trade but may also drive up inflation and hinder economic growth.

In response to market turmoil, many governments and central banks have begun to take measures to stabilize the market. Domestic relevant institutions have started to increase their holdings in ETFs, and Japan and South Korea have also implemented a series of measures to stabilize the market. These actions have alleviated market panic to some extent.

There is a significant divergence in market views regarding the future direction. Some analysts believe there is still room for further selling, while others think the market has already shown signs of a bottom. Technical analysts are generally pessimistic, expecting the price of Bitcoin to possibly fall further to the range of $66,000 to $72,000.

Currently, the market is closely watching the progress of negotiations between the United States and its trading partners, as well as the policy direction of the Federal Reserve. The Federal Reserve is about to release the minutes of the March monetary policy meeting, which may provide more clues for the market. With the shadow of tariff policies still lingering, the volatility of global financial markets may continue for some time. Investors need to closely monitor the situation and carefully assess the risks.