The truth behind the stock and bond double decline: technology rotation vs policy reassurance, reasons behind ETH's drop

【Chain Wen】On Tuesday, global financial markets experienced intense volatility, but the real main character was not the widely discussed geopolitical risk events.

On the surface, the US stock market declined, but a closer analysis reveals that the sectors most affected were actually technology and AI-related sectors. This is a sector rotation within the industry, essentially a structural adjustment driven by fundamentals rather than panic selling. The bond market was the craziest that day. European and American bonds plummeted directly, triggered by a report from Deutsche Bank analysts that was bearish on the US dollar and US Treasuries, immediately prompting the market to reassess the demand for dollar assets.

Japan was also making noise, with the Prime Minister suddenly proposing to cancel the food consumption tax, causing Japanese bonds to plunge as well. However, Japanese financial institutions responded quickly, taking measures to stabilize the market; the Finance Minister even had a phone call with the US, quickly calming the situation.

The US was not idle either. Trump then announced that there would be no military action against Greenland, causing the stock market to rebound immediately; the Treasury Secretary was also handling the Deutsche Bank incident, preventing further sell-offs of US debt (if it had really collapsed, the credibility of the dollar would be at risk).

Returning to the issue of ETH’s decline—if one insists on blaming it on geopolitical risks, the reasoning is actually unsubstantiated. The stock market decline was due to internal sector rotation within technology; US Treasury volatility was mainly related to monetary policy and asset allocation expectations; at the policy level, finance ministers and central banks around the world are actively taking measures to stabilize the situation. These factors together are the true reflection of this round of market adjustment.