According to Followin, On Oct 11, the University of Michigan’s preliminary consumer sentiment index came in at 55 — slightly above expectations but still the lowest since May — signaling persistent strain from high prices and labor uncertainty. One-year inflation expectations held at 4.6%, while long-term expectations stayed at 3.7%, underscoring concerns about sticky inflation and policy risks. Meanwhile, the U.S. government shutdown entered its tenth day, with layoff plans underway, further dampening investor confidence in domestic demand.
As volatility surged, U.S. equities tumbled on Friday: the Dow fell nearly 2%, the Nasdaq plunged over 3.5%, and the S&P 500 logged its steepest one-day drop since April. Crypto markets mirrored the sell-off, with total liquidations reaching $19.3 billion in 24 hours — over 80% from long positions — signaling a sharp sentiment reversal.
Bitunix Analyst Insight:
This downturn stems not from a single headline but from the confluence of macro and policy uncertainty. Trump’s abrupt call for sweeping tariffs on China has intensified risk aversion, prompting markets to reprice the “policy conflict cycle.” Short-term volatility will likely remain elevated; investors should monitor U.S. dollar strength and Treasury yields as leading indicators of risk asset adjustments.
Markets are shifting from “rate-cut trades” toward “liquidity defense” — the core theme for the coming weeks. In crypto, sentiment remains divided: major shorts dominate positioning while retail longs persist, suggesting BTC may retest the 108k support zone.
