US stocks on Monday (1/13) saw mixed performance, with US Treasury yields still hovering at high levels, and the market remains concerned as Trump is about to take office. Bitcoin briefly fell below the $90,000 mark, with $820 million in liquidations across the network, with $210 million in ETH and $170 million in BTC being the largest.

Trump is about to take office, and the market remains concerned

According to Bloomberg, the S&P 500 index briefly fell below the closing price on November 5 (before Trump's election as president) yesterday, and closed only slightly above that level on Monday. As people are increasingly concerned that inflation remains stubborn, the Fed will have to cut its rate cut plans for this year to deal with inflation, investors are selling stocks and interest rates are also rising. The surprisingly strong employment data on Friday will only exacerbate these concerns.

There are several reasons for the decline: the deterioration of the economic outlook; investors are increasingly concerned about high stock valuations; and concerns about the Fed's rate cut path are growing. Traders are also assessing the potential impact of Trump's proposed policies, including imposing across-the-board tariffs on imported goods and massively deporting low-wage undocumented workers.

(Howard Marks' latest memo, are high P/E ratios and AI optimism at risk of a bubble?)

These concerns have already manifested in the bond market, with the 20-year Treasury yield exceeding 5%. The 10-year Treasury yield, which is sensitive to policy, is also heading in that direction, reaching its highest level since the end of 2023.

Stock market volatility is also rising, with the Chicago Board Options Exchange Volatility Index (VIX) hovering around 20, a level that usually indicates traders are feeling anxious.

Bitcoin briefly fell below $90,000

Due to the US government's announcement that it will further restrict the export of AI chips and technology, chip stocks continued to fall yesterday. BTC also plummeted from $95K to $89,256, before rebounding back above $94K as of the time of writing.

(BTC falls below $91K! Crypto trading and macroeconomics? Tech stocks plunge shakes the market: US stock futures fall, bond yields soar)

$820 million in liquidations across the network

The crypto market saw $820 million in positions liquidated within 24 hours, with the largest being $210 million in ETH and $170 million in BTC.

However, most cryptocurrencies have slowly rebounded after the decline, with the top 10 cryptocurrencies by market cap showing a mixed performance, with 24-hour price changes ranging from -3.7% to 1.4%.

(Have investors lost confidence? FETH outflows $282 million in three days, interpreting Fidelity's research report on how to view Ethereum and Solana)