The market is surrounded on all sides! Gold prices fall below $4,000, and crypto assets are collapsing simultaneously

Global financial markets are in a sea of red today. Gold prices once touched $3998 per ounce, declining for four consecutive days; Bitcoin fell below the psychological threshold of $90,000, currently at $87.61K; Ethereum also failed to escape, dropping to $2.94K. What exactly is behind this wave of selling?

Japan’s “Three Killings” Storm Spreads Globally

Japan’s market bears the brunt first. The Nikkei 225 index closed down 3.2%, and the yen exchange rate fell below the 155 mark (USD/JPY at 155.17), with stocks, bonds, and currencies all collapsing simultaneously. Market concerns about potential adjustments to Japan’s government spending policies led to a massive sell-off in tech stocks, and geopolitical risks further fueled the turmoil.

This Japanese crisis quickly spilled over into global markets.

US Stock Technical Breakdown, Futures Drop Across the Board

Signs of trouble appeared before the US market opened. As of 4:55 AM Eastern Time, Dow futures fell 0.21%, S&P 500 futures dropped 0.18%, and Nasdaq 100 futures declined 0.21%.

More severely, technical breakdowns occurred. All three major indices—S&P 500, Dow, and Nasdaq—fell below their 50-day moving averages— a key technical level that often signals a short-term trend reversal. Technical analyst John Roque predicts the Nasdaq will continue its decline, with potential losses expanding to 8%.

Tech giants are badly hit. NVIDIA (NVDA) fell 0.86%, Tesla (TSLA) declined 0.28%, and Home Depot (HD) pre-market dropped 0.59%. The companies are about to release earnings, prompting investors to cut losses and exit positions.

Crypto Assets Become “Mourning Items”

Bitcoin fell below $90,000, reaching a seven-month low, while Ethereum dropped below $3000. Hex Trust analyst Quaglini pointed out that this correction may not be over—if the stock market continues to weaken, Bitcoin could test the $70,000 support level again.

Gold Price Breach, Liquidity Competition Intensifies

Gold prices dipped from around $4000 to $3998 per ounce, marking a four-day losing streak, then rebounded to around $4030. Analysts believe that as market panic spreads, investors are rushing to cash out for liquidity, causing gold and other risk assets to decline in tandem—something rarely seen in history, reflecting that market risk sentiment has reached a critical point.

Where Is the Bottom?

When stocks, bonds, currencies, commodities, and crypto assets all fall together, this is no longer a correction of individual assets but a comprehensive revaluation of risk assets. Investors should be alert to further systemic risks.