Key Takeaways:
- Bitcoin (BTC) rose above $107K, viewed as a digital safe haven.
- Gold surged to $3,297 and Brent crude hit $66, driven by geopolitical concerns.
- Nasdaq fell to 19,142 as tech stocks declined on U.S.–China trade tensions.
- Investor sentiment turned risk-off, shifting flows into crypto and commodities.
Bitcoin (BTC) soared above $107,000 on May 21, 2025, leading a broad cryptocurrency rally, as commodities edged higher and global equities declined. The moves followed Moody’s downgrade of the U.S. credit rating and escalating trade tensions between Washington and Beijing.
Global Indices: Equities Decline Amid Economic Concerns
Moody’s downgraded the U.S. credit rating from Aaa to Aa1, citing persistent fiscal deficits and rising national debt, leading to a broad sell-off in government bonds and equities.
Additionally, trade tensions intensified as China criticized U.S. restrictions on Chinese AI chips, pledging retaliation and accusing the U.S. of economic bullying.
- Dow Jones Industrial Average: 42,677.24 (▼0.27%)
- Nasdaq Composite: 19,142.71 (▼0.38%)
- Nikkei 225: 37,529.49 (▼0.31%)
- S&P 500: 5,940.45 (▼0.39%)
- FTSE 100: 8,772.3 (▼0.16%)
- Euronext 100: 1,603.52 (▲0.65)
Cryptocurrency Market: Bitcoin Breaks $107K
Bitcoin’s surge past $107,000 reflected its growing appeal as a digital safe-haven, driven by institutional inflows, supportive regulatory shifts, and rising investor demand in an uncertain economic climate.
- Bitcoin (BTC): $107,616 (▲1.23%)
- Ethereum (ETH): $2,577.34 (▲0.25%)
- Solana (SOL): $168.51 (▲2.09%)
Individual Stocks: Tech Giants Lead Losses
Major tech stocks moved mostly lower, pressured by renewed tensions in U.S.–China trade relations. Meanwhile, Apple and Amazon saw declines amid concerns about fresh tariffs on Chinese electronics and supply chain disruptions.
Nvidia and Meta faced headwinds as chip export restrictions and hardware tariffs sparked investor caution.
- Tesla (TSLA): $343.82 (▲1.2%)
- Apple (AAPL): $206.86 (▼0.9%)
- Meta (META): $637.10 (▼0.6%)
- Nvidia (NVDA): $134.38 (▼0.8%)
- Amazon (AMZN): $204.07 (▼1.0%)
Commodities: Oil Climbs, Gold Shines on Global Tensions
- Brent Crude: $65.48 per barrel (▲0.68%)
- WTI Crude: $62.13 per barrel (▲0.77%)
- Gold: $3,315 per ounce (▲0.77%)
- Natural Gas: $3.39 per MMBtu (▼1.17%)
Oil prices rose on concerns over potential supply disruptions, following reports about a possible Israeli military action against Iran. Gold also gained as investors sought safe-haven assets amid elevated geopolitical tension and market volatility.
Market Wrap-up: Risk-Off Sentiment Prevails
Investor confidence weakened amid the U.S. credit downgrade and heightened trade tensions, prompting a shift into gold and BTC as perceived havens from equity and bond market instability
Read more: US Senate Advances GENIUS Stablecoin Act in Bipartisan Vote
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