Wall Street Tumbles as Treasury Yields Surge and Bitcoin Hits New High

U.S. Equities Sink as Treasury Auction Triggers Panic

Wall Street faced a major jolt this week as concerns over the U.S. fiscal outlook triggered a broad sell-off. The Dow Jones Industrial Average plummeted more than 700 points, with the S&P 500 and Nasdaq also posting declines of 1.6% and 1.3%, respectively. The market turbulence followed a particularly weak U.S. Treasury auction that sent yields surging — the 10-year Treasury yield spiked by 11 basis points in a single session.

This rise in yields has intensified investor anxiety about the sustainability of U.S. debt and the implications of looming tax cuts and government spending increases. Higher yields make borrowing more expensive and can dampen corporate profits and consumer activity. As equities sold off, safe-haven assets saw renewed interest — but it wasn’t just gold drawing attention.

Bitcoin broke past the $110,000 threshold, reaching an all-time high. The rally in the crypto space appears fueled by institutional investment inflows and broader concerns about the weakening U.S. dollar. Many investors are viewing digital assets as a hedge against both inflation and traditional market volatility. Read more on Bitcoin’s record-breaking surge.

International Shifts: India Retreats, Japan Rebalances, Copper in Crisis

International markets mirrored the tension on Wall Street, albeit with localized triggers. In India, the Sensex dropped by 869 points, and the Nifty fell below the 24,700 mark. Analysts cite profit-booking and concerns over global demand as primary factors driving the sell-off.

In Japan, a more strategic shift is underway. Japanese institutional investors are offloading U.S. Treasuries in favor of domestic bonds, driven by rising Japanese interest rates and unfavorable currency hedging costs. This realignment could put additional pressure on U.S. borrowing costs and reduce demand for future Treasury issuances. Read the Reuters analysis for deeper insights.

Meanwhile, commodity watchers are sounding alarms. The International Energy Agency (IEA) warned that copper supply may fall short by up to 30% by 2035. Such a gap could derail the global green energy transition, as copper is a critical component in electric vehicles, solar panels, and grid infrastructure. This looming shortage is expected to drive prices higher and prompt major investments in mining and recycling. See the full report on The Guardian.

As central banks and investors navigate turbulent waters, the coming weeks will likely hinge on bond market stability, fiscal policy clarity, and whether cryptocurrency continues to act as a viable hedge. For now, volatility remains the name of the game.