Global Markets Rattle: Commodities and Crypto Slump as 'Trump Trade' Fades

A wave of risk aversion swept through global financial markets on Monday, triggered by a synchronized sell-off in hard assets and digital currencies. Bitcoin plummeted to a 10-month low, a move analysts are describing as the definitive end of the 'Trump honeymoon'—the period of market exuberance that followed the US administration's initial policy rollout.

Commodities Under Pressure

The bearish sentiment was not confined to digital assets. A broad slump in the commodities complex rattled investors, with Gold, Silver, and Crude Oil posting significant losses.

• AUD & CAD Weakness: The slide in industrial metals and oil prices weighs heavily on the Australian and Canadian dollars.
• Safe Haven Flows: The simultaneous drop in risk assets typically directs capital flows toward the US Dollar and Japanese Yen (JPY) as defensive plays.

Market Sentiment Shift

The terminology 'Trump honeymoon ends' suggests that the market is repricing the US administration's ability to sustain economic momentum. With Chinese EV giant BYD also seeing shares plunge, the narrative of slowing global demand is further dampening the outlook for risk-sensitive currencies.