U.S. exchanges ended the session lower – the S&P 500 fell about 1%, U.S. Treasury yields rose, and the dollar strengthened as investors began pricing in a higher likelihood of further monetary tightening. Gold lost value, while oil prices moved within a relatively narrow range.
Digital assets also came under pressure, following the broader risk‑asset market. Bitcoin and Ethereum fell between 1% and 3%, and capital flows into cryptocurrency‑based ETF funds turned negative. Open interest in futures contracts declined, funding rates fell, and the number of long position liquidations rose as investors curtailed leverage after the Fed’s decision.
Market attention now focuses on upcoming inflation and labor market data, as investors adjust to the less predictable monetary policy outlook under new Fed Chair Kevin Warsh. U.S. Treasury yields, the dollar, capital flows into crypto ETF funds, and derivatives positioning will remain key indicators to show whether the recent correction in risk‑asset valuations will stabilize later in the quarter.
Ryan Lee, Chief Analyst, Bitget Research
