A full-blown crypto meltdown is unfolding as markets spiral into risk-off mode, with virtually every coin getting torched—some plunging nearly 20%. This isn't just a crypto selloff; it's a liquidity scramble as traders shed speculative assets ahead of what could be a tidal wave of margin calls and stop losses across multiple assets.
The red flags are everywhere—the crypto wipeout is casting a long shadow over global equities, suggesting retail traders are offloading profitable positions before they get steamrolled in FX or stocks. The same panic dynamic is hitting gold markets, where safe-haven demand is being overridden by cash-raising urgency.
But the real inferno is in FX, where trade surplus currencies are being obliterated, standing directly in the line of fire. This goes beyond the balance of payments fallout—we're staring at a monetary policy divergence of epic proportions.
Global central banks may be forced to cut rates, but the Fed? It’s looking at a raging inflation beast that just got a fresh dose of adrenaline. If these tariffs stick, expect the inflation dragon to roar back to life, forcing the Fed to keep the screws tight while other central banks scramble to ease.
The result? Long-term U.S. Treasury yields spike higher, further supercharging the dollar wrecking ball, which is already smashing its way across markets. Right now, we’re seeing a safe-haven dollar bid, but this is bigger than that—it’s a fundamental repricing of inflation, growth, and policy risks.
Buckle up. This is just the opening act. But the real question is, assuming this dump is simply a cash-raising exercise, where can you buy the dip in BTC and Gold?
SPI Asset Management provides forex, commodities, and global indices analysis, in a timely and accurate fashion on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors.
Our publications are for general information purposes only. It is not investment advice or a solicitation to buy or sell securities.
Opinions are the authors — not necessarily SPI Asset Management its officers or directors. Leveraged trading is high risk and not suitable for all. Losses can exceed investments.
Recommended Content
Editors’ Picks

AUD/USD: Bulls need to clear 0.6540
AUD/USD reversed part of Monday’s optimism and came all the way down to revisit the 0.6450 region, where its critical 200-day SMA also sits. The marked daily pullback in the pair followed the solid rebound in the US Dollar despite steady concerns on the trade front.

EUR/USD: Tough resistance emerges around 1.1450
EUR/USD gave away most of the gains recorded at the beginning of the week, coming back to the area below the 1.1400 support on the back of the resurgence of the bid bias in the Greenback. Market participants will now shift their attention to the upcoming data releases in the US labour market.

Gold holds on to higher ground around $3,350
Gold is falling from its multi-week high of over $3,400 achieved on Monday. It is currently losing further momentum and flirting with the $3,350 region per troy ounce on the back of a strong Greenback, higher yields and mixed US data.

Ripple Price Prediction: XRP could stage massive recovery amid growing institutional adoption
Ripple’s (XRP) gains momentum as the crypto market broadly consolidates, trading at $2.22 at the time of writing on Tuesday. The slight uptick in the XRP price comes amid recovery in the broader crypto market, particularly with Bitcoin (BTC) stepping above $106,000.

AUD/USD: Bulls need to clear 0.6540
AUD/USD reversed part of Monday’s optimism and came all the way down to revisit the 0.6450 region, where its critical 200-day SMA also sits. The marked daily pullback in the pair followed the solid rebound in the US Dollar despite steady concerns on the trade front.