Anndy Lian
Global market dynamics: Bitcoin’s wild ride, US tech stocks take the lead
Let’s start with the heartbeat of this story: global risk sentiment. Recently, there’s been a noticeable uptick in optimism among investors, and much of that can be traced back to the US labour market’s surprising strength. The latest US JOLTS (Job Openings and Labour Turnover Survey) data dropped a bombshell, revealing that job openings climbed to 7.39 million, blowing past both the previous figure and the consensus forecast of 7.1 million.
This isn’t just a number; it’s a signal that the US economy is holding its ground, even as storm clouds gather elsewhere. The Organisation for Economic Co-operation and Development (OECD) recently slashed its growth outlook for both the US and the global economy, painting a picture of potential slowdowns driven by factors like geopolitical tensions and uneven post-pandemic recovery.
But here’s the kicker: the JOLTS data has stolen the spotlight, overshadowing those gloomy forecasts and injecting a dose of confidence into markets worldwide.
Why does this matter? A robust labour market means more jobs, more consumer spending, and a stronger economic backbone—key ingredients for sustaining growth. It’s also a double-edged sword for the Federal Reserve. With job openings this high, wage pressures could persist, keeping inflation stubbornly above the Fed’s two per cent target.
That’s led some investors to rethink their bets on imminent rate cuts, as a tight labor market might prompt the Fed to keep rates higher for longer. For now, though, the takeaway is clear: the US labor market’s resilience is a linchpin for the improved global risk sentiment we’re seeing, acting as a buffer against the OECD’s warnings and giving investors a reason to lean into riskier assets.
US stock markets: Tech takes the lead
This wave of optimism has rippled through the US stock markets, which closed higher on Tuesday in a session that showcased the power of technology. The Dow Jones Industrial Average gained 0.51 per cent, the S&P 500 rose 0.58 per cent, and the Nasdaq Composite led the pack with a 0.81 per cent increase. Digging into the details, it’s clear that tech stocks were the driving force, with chip makers standing out as some of the biggest winners.
This isn’t surprising—semiconductors are the lifeblood of everything from smartphones to AI systems, and demand shows no signs of slowing. The strong US jobs data likely fueled this rally, as a healthy labor market supports consumer spending on tech-driven products and services.
Another piece of the puzzle is the CBOE Volatility Index (VIX), often dubbed the “fear index.” It dropped to 17.69 from 18.36, hitting its lowest level in over two weeks. For context, a lower VIX means less market fear—investors are feeling more comfortable taking risks rather than hunkering down.
This easing of volatility, paired with rising stock prices, paints a picture of a market shrugging off global growth concerns and embracing the US economy’s underlying strength. Asian equity indices followed suit in early trading today, buoyed by the US jobs surprise, and US equity index futures suggest Wall Street will open higher—a clear sign that this risk-on mood has legs.
Treasury yields and the US dollar: Mixed signals
Shifting gears to the bond market, US Treasury yields have been on the move, climbing across the curve for two straight sessions. The increases were modest—less than 2 basis points (bps)—but notable nonetheless. The 10-year Treasury yield settled at 4.454 per cent (up 1.4 bps), while the 2-year yield hit 3.951 per cent (also up 1.4 bps).
This uptick reflects a subtle shift in investor expectations. Strong labor data could mean a hotter economy and stickier inflation, prompting bondholders to demand higher yields. It’s also a hint that the Fed might not ease monetary policy as quickly as some had hoped, especially with key data like the nonfarm payrolls report looming on Friday.
Meanwhile, the US Dollar Index, which tracks the greenback against a basket of major currencies, edged up by 0.52 per cent. That sounds like a win, but don’t pop the champagne just yet—the dollar’s path forward is anything but certain. With the nonfarm payrolls data and other macroeconomic releases on the horizon, the dollar could face headwinds. A blockbuster jobs report might bolster it further, but any signs of weakness could send it tumbling, especially if investors start pricing in a softer Fed stance. For now, the dollar’s holding its ground, but it’s on a tightrope, and the next few days could tip the balance.
Commodities: Oil up, gold down
Over in the commodities space, we’re seeing a tale of two assets. Brent crude oil jumped 1.5 per cent to settle at US$66 per barrel, a move that likely reflects a mix of geopolitical jitters, supply concerns, and optimism about economic activity tied to the US jobs data. Oil thrives when demand looks strong, and a resilient US economy fits that bill. Gold, on the other hand, took a step back, falling 0.8 per cent to US$3,353 per ounce.
This retreat isn’t shocking—gold often loses its shine when risk sentiment improves and Treasury yields rise. Higher yields make non-yielding assets like gold less appealing, and a stronger dollar doesn’t help either, as it raises the cost for foreign buyers. The contrast between oil and gold underscores how markets are juggling growth hopes with inflationary pressures, a dynamic that’s likely to persist as more data rolls in.
Cryptocurrency market: Bitcoin’s wild ride
Now, let’s dive into the cryptocurrency market, where Bitcoin has been stealing headlines. It hit an intraday high of US$106,813.58 before slamming into resistance and sliding back to the US$105,000 range. Ethereum mirrored this pattern, peaking at US$2,650 before dropping to the late $2,500s.
Trading volumes dipped over the past 24 hours, hinting at a pause in the frenzy. But the real drama came with US$155 million in liquidations across the crypto market, including US$94 million in bullish bets wiped out. Bitcoin’s Open Interest fell 2.48 per cent, and Ethereum saw a jaw-dropping 317 per cent drop in funds locked in derivatives—a sign that leveraged players are scaling back. On Binance, traders with open Bitcoin positions tilted bearish, pushing the Long/Short ratio below 1.
Then there’s the Trump twist: a cryptocurrency wallet bearing his name sparked a stir, though the Trump family quickly denied any connection. It’s a reminder of how fast rumors can move in this space—and how they can jolt sentiment. Bitcoin’s volatility isn’t new, but its ability to hover near all-time highs despite these swings shows its growing maturity as an asset class, even as short-term uncertainty lingers.
Truth social and crypto: A bold convergence
Speaking of Trump, his Truth Social platform is making waves in the crypto world. A division of the New York Stock Exchange has filed to list a spot Bitcoin ETF linked to the platform, a move that could bring Bitcoin to everyday investors in a big way.
This follows a partnership between Trump Media and Crypto.com to roll out digital asset products like token baskets and ETFs. The cherry on top? A US$2.5 billion Bitcoin treasury plan from Trump Media, announced as spot Bitcoin ETF assets soar past US$130 billion. This isn’t just a side hustle—it’s a full-on push to merge social media, politics, and cryptocurrency.
What’s the impact? For one, it could democratise crypto access, drawing in retail investors who trust the Trump brand. It also ties Truth Social’s fortunes to Bitcoin’s, potentially amplifying its reach if crypto keeps climbing. But there’s risk too—if Bitcoin stumbles, it could drag the platform’s credibility down with it. This bold bet reflects a broader trend: traditional entities embracing digital assets as they go mainstream, a shift that could reshape both markets and media.
Expert voices: Cai and Hayes weigh in
Finally, let’s hear from the experts. Mike Cai, a former tech exec turned Web 3 investor, is wildly bullish on Bitcoin, predicting it could hit US$1.1 million within a decade. Speaking at the BEYOND Expo in Macau, he argued that AI’s application layer—not large language models—will drive the next tech wave, with Bitcoin riding that tide. He’s even planning an AI hub in Hong Kong to foster startups, a sign of his faith in tech-crypto synergy.
Then there’s Arthur Hayes, CIO of Maelstrom and BitMEX co-founder, who told Maeil Economy at Bitcoin 2025 in Las Vegas that Bitcoin could reach US$250,000 this year and US$1 million by 2028. His reasoning? A “weak dollar phenomenon” tied to Trump’s trade policies, which could devalue the dollar and push investors into Bitcoin as a hedge.
Both see structural tailwinds—AI innovation for Cai, dollar dynamics for Hayes—lifting Bitcoin to new heights. Their forecasts aren’t guaranteed, but they highlight why crypto remains a hot topic: it’s a bet on disruption, scarcity, and a shifting financial order.
Wrapping it up
So where does this leave us? Global risk sentiment is on an upswing, thanks to a rock-solid US labor market that’s outshining growth worries. Stocks are riding the wave, yields and the dollar are in flux, and commodities are sending mixed signals.
Bitcoin’s volatility keeps us on our toes, while Truth Social’s crypto pivot could be a game-changer. Experts like Cai and Hayes see a bright future, but the road ahead hinges on data, policy, and sentiment. There are plenty of opportunities, but not without risks.
Source: https://e27.co/global-market-dynamics-bitcoins-wild-ride-us-tech-stocks-take-the-lead-20250604/
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