#NasdaqWorstDayInOverAYear On June 5th, the Nasdaq tanked -4.18% down to 25,709 points, marking its worst day since April 2025. The S&P 500 dropped -2.63%, and the Nasdaq-100 lost 1,434 points. A whopping $1.8 trillion was wiped off the market.
🔍 WHAT TRIGGERED THE CRASH?
1. Surprisingly strong employment – 172,000 jobs were added in May vs expectations, and the unemployment rate fell to 4.1% (a low since 2026). Consequence: the odds of a rate hike in December jumped from 26% to 43%, and the 10-year bond yield rose to 4.84% (highest since 2024).
2. Panic in semiconductors – The chip ETF plunged -13%. Cisco dropped -12% due to a weak forecast, raising fears that AI spending might be overhyped.
3. Meta plummeted -7.9% – Two verdicts found it liable for damages to young users, sparking fears of forced restructuring.
4. Geopolitical tensions – Trump extended attacks on energy plants in Iran by 10 days.
🧠 WHAT DOES IT MEAN FOR CRYPTO?
· Less liquidity: High rates → investors prefer Treasury bonds.
· More competition: Capital flowing out from tech stocks may not find its way into crypto if the dollar stays strong.
· The Fed won’t cut: Solid employment reduces urgency to lower rates.
Will the capital fleeing stocks find refuge in Bitcoin? 👇
#NasdaqCrash #Fed