QCP Asia: The sharp drop in U.S. stocks dragged down market sentiment, and BTC briefly fell below $80K but may welcome a rebound signal

Odaily Planet Daily News QCP Asia Market analysis on March 11, the optimism of the U.S. stock market after Trump's victory quickly reversed, the S&P 500 index and the Nasdaq fell 2.7% and 3.8% respectively, and Magnificent 7 technology stocks evaporated $830 billion in a single day, the largest one-day decline in history. The bearish sentiment in the market is back in full swing, and the volume of put options on US stocks has risen to its highest level since 2020. In an interview with Fox, Trump showed a nonchalant attitude towards the recession, saying that the economic downturn may be necessary to repair the United States, which further exacerbated the market panic. In the crypto market, BTC briefly fell below $80,000 as the market rushed to buy put options as a hedge. However, the demand for long-term call options in today's Asian trading session suggests that some investors may be bracing for a support rally around $75,000. Despite the pessimistic market sentiment, not all signals point to the downside. The US Treasury 10-year yield fell by about 60 basis points and the US dollar weakened, which has historically been positive for dollar-denominated risk assets, including US equities and cryptocurrencies. In addition, the decline in Treasury yields has also eased the burden of government borrowing costs, which is crucial for Trump's expansionary fiscal policy, including potential tax cuts.