President Donald Trump may have softened his stance on tariffs, but markets aren’t biting. On Thursday, Commerce Secretary Howard Lutnick confirmed that Mexico would be exempt from Trump’s newly announced 25% tariffs—initially sending Bitcoin soaring past $91,000. But the relief didn’t last. Stocks tumbled, Bitcoin slipped back to $88,500, and investors quickly turned their attention to a bigger concern: rising interest rates.
Stagflation Fears Hit Risk Assets
While Washington was busy with tariff negotiations, global bond yields were skyrocketing. Germany saw one of its worst bond crashes ever, with 10-year Bund yields jumping over 40 basis points to 2.83%. Meanwhile, Japan’s 10-year government bond yield more than doubled over the past six months, now sitting at 1.51%.
The U.S. hasn’t been spared. After declining sharply since Trump’s inauguration, the 10-year Treasury yield spiked over 20 basis points in just 48 hours, reaching 4.30%. According to Lekker Capital’s Quinn Thompson, this kind of rate surge amid slowing growth is a textbook case of stagflation. “Historically, this has not treated risk assets well,” he warned.
Investors Should Wait for Jobs Report
The February U.S. Nonfarm Payrolls Report drops on Friday, and it could be a game-changer. Economists expect 160,000 new jobs, up from 143,000 in January, with unemployment holding steady at 4%. But if the number beats expectations, interest rates could surge even higher—putting more pressure on stocks and crypto alike.
Investors can track how these developments impact crypto prices on the TipRanks Cryptocurrency Center. Click on the image below to find out more.
