Three US Wall Street Indexes have plunged, marking the biggest one-day drop since October 10, 2025, which is three months. This has likely triggered a steep decline across the crypto market, with BTC leading the fall after slipping below the $90k mark.
Little to no chances of a rate cut by the US Federal Reserve, and recently announced Greenland-related tariffs are expected to add volatility to the crypto market and other industries.
US Wall Street Index Fall
Dow, S&P, and Nasdaq have been hit by 1.76%, 2.06%, and 2.39%, applicable in the same order. Dow is now at 48,488.59 points after shedding 870.74 points. S&P is now 6,796.86 points after losing 143.15 points. Nasdaq’s fall of 2.39% has taken it to 22,954.32 points, losing 561.07 points.
The decline is amid the rising uncertainty since the announcement of 10% tariffs on eight European nations. Authorities are reportedly negotiating the deal not just over Greenland but also over Greenland. One report by BBC has cited that Europe may suspend approval of the US trade deal altogether.
A public announcement in this regard is expected to be made in Strasbourg, France, this Wednesday. If suspended, then it could lead to an escalation of tension between the US and Europe. Needless to say, the retaliation could hit US Wallet Street Indexes harder while also impacting the international trade order.
Crypto Market Decline
BTC has plummeted below the $90k mark, now exchanging hands at $89,816.09, down by 1.97% over the last 24 hours. Even ETH has fallen below the $3k mark to trade at around $2,989.61, down by 5.70% during the same timeline. The market cap of the segment is inching closer to the $3 trillion milestone with the recent decline of 3.23%. The FGI is now tilted more towards 32 points.
Volatility across the global crypto market is expected to increase if US Wallet Street Indexes continue to fall and tensions between America and Europe don’t calm down. The meme coin segment will also be affected. Its market cap is already down by 2.27%, with top tokens like DOGE and SHIB struggling to rebound.
Volatility in Crypto Market
What’s factoring, or adding, volatility in the global crypto market is US President’s 10% tariffs, plus little to no chances of the US Federal Reserve to cut rates. US President Donald Trump may go on to impose 25% tariffs if no Greenland deal is booked in due time.
As for the rate cut, Polymarket shows that there is a 97.6% chance for the Fed to not cut rate this time. It has left 2.3% chances for a 25 bps cut, less than 1% chance for a 50 bps cut, and less than 1% chance for a 25+ bps increase. A rate cut is also less likely following a lower growth projection of the US by the IMF.
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