Trump’s fed criticism triggers Wall Street panic: investors flee from US markets by gold and bitcoins

The mood on Wall Street is becoming cautious as more investors begin to get money from the assets of the United States, a trend that some analysts call the change of “selling America.”

This occurs after President Trump launched another round of criticism to the president of the Federal Reserve, Jerome Powell, questioned the management of interest rates on the part of the Central Bank. The comments caused uncertainty in the markets at the beginning of the week, shaking the confidence in the economy of the United States and pushing investors to seek safer options.

Markets react rapidly to increased political tensions

In general, during market stress, investors resort to safe bets such as US government bonds. And the US dollar. But that did not happen this time. Instead, both assets were sold along with shares. The 10 -year treasure yield increased above 4.4%, and the dollar fell to its lowest level in almost three years.

For Tuesday, there was a small recovery in early trade, but it was not enough to calm the nerves. The dollar remained below a key psychological level, and bond yields remained high: signing that investors are still restless.

Gold and Bitcoin as investors seek alternatives

Instead of the bonds or the dollar, investors are moving their money to gold and cryptocurrencies. Gold reached another maximum of all time on Tuesday, and Bitcoin rose more than $ 89,000. These movements show that many people look for places to store their wealth outside the US financial markets.

The reasons go beyond Trump’s latest comments. There are broader concerns about economic growth, the increase in tariffs, political tension and how much influence could politics have on the decisions of the Federal Reserve.

“It’s not about giving up the United States,” said Ann Berry, founder of Threadneedle Ventures. “But at this time, people are more cautious by investing a lot in US assets.”

Great investors are now focusing more on global markets

Recent data show a notable change in investment flows. The US ETF. The US ETFs lost $ 3.6 billion at departures last week, while foreign markets attracted more than $ 3 billion in new money, according to JPMorgan.

This is significant because international investors play an important role in the US market: they have approximately one third of US actions and more than 25% of government debt. Wall Street has always been a symbol of the force of the United States, but part of that trust is beginning to fade.

“We have always had the advantage of strong institutions and reliable laws,” said Callie Cox of Ritholtz Realth. “But when they question, it creates uncertainty for investors.”

Unusual market behavior causes concerns

In most cases, when both actions and bonds fall together, it is due to inflation. But this time, analysts believe it is more confidence. With so many political and policy concerns, even more loyal foreign investors are beginning to doubt.

“There is only a lot of uncertainty at this time,” said Michael Gooseay of the main Asset Management. “Investors are not sure about the direction of the government, future growth and inflation risks, all at once.”

The long -term perspective still has bright points

Despite the current market concerns, some experts still see the assets of the United States as strong long -term investments, especially during a possible recession. American bonds, in particular, have historically provided stability when the economy slows down.

Krishna Memani, cio in Lafayette College, said that although international bonds can work well in some situations, they have not offered the same protection in the recessions of the United States. The US dollar also remains a vital part of global trade.

For now, market volatility is expected to continue as global investors closely monitor what is happening in the United States “this is a time when the world is looking at,” said Vanguard economist Kevin Khang. “People want to know if the United States can still be a source of stability.”

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