- The market saw sharp selling as traders reacted to reduced clarity on U.S. economic conditions and unwound positions after the shutdown-related rally ended.
- The October data blackout heightened uncertainty as investors interpreted missing unemployment and economic reports as signals of weakening conditions across vital sectors.
- Corporate bond pressure, especially around AI-linked firms, triggered additional selling in equities and accelerated losses across major crypto assets within hours.
Market downturn dominated global trading after $1.45 trillion vanished from stock and crypto markets within 24 hours, following sharp reactions to shifting expectations around U.S. economic conditions, government policy signals, and bond-market stress.
Rumor-Fueled Rally Gives Way to Broad Selling
The drop followed a period in which traders positioned for a possible resolution to the U.S. government shutdown. According to a post from Bull Theory, the market had rallied on expectations that political gridlock would ease. The tweet noted that Bitcoin surged toward the $107,000–$108,000 range during this phase. When the anticipated news arrived, the broad move turned into concentrated profit-taking, sending both equities and digital assets lower. This shift reflected traders locking in gains after a strong run.
The reversal spread quickly across global assets. Market participants began unwinding positions as futures signaled reduced enthusiasm across major indexes. Crypto assets, which often mirror equity volatility at a faster pace, responded with deeper losses. Bitcoin and other major tokens moved sharply lower within hours.
This reaction created a unified wave of selling, reinforcing the view that traders were positioned heavily ahead of the announcement. Once the catalyst passed, the market faced reduced momentum and thin support levels, setting the stage for rapid downside pressure.
Data Blackout Sparks Uncertainty
Another trigger came from the White House confirming that October unemployment and economic reports would not be released. The tweet from Bull Theory said traders interpreted the blackout as a sign that underlying numbers may be weak. This absence of data encouraged investors to reduce risk in both equities and crypto.
The halt in reporting reduced clarity across key growth metrics at a time when traders were already uneasy. With fewer indicators to measure the strength of U.S. conditions, market participants leaned toward caution. That shift added pressure across liquidity-sensitive assets.
As uncertainty grew, price swings expanded. Investors moved toward safer positions, pulling capital from high-beta sectors, including digital assets. This trend raised volatility during an already fragile period.
Bond Market Stress Adds New Pressure
The tweet also pointed to corporate bond selling, particularly among companies heavily invested in artificial intelligence. Traders viewed the move as a signal that borrowing tied to aggressive AI expansion may be losing support.
Stress in this segment weighed on equity benchmarks, which had relied on AI-linked firms for performance throughout the year. As bond prices weakened, concerns spread across related stocks.
Because crypto often responds to equity moves, the downturn quickly carried into digital assets. As equities retreated, crypto accelerated lower, completing a chain reaction that erased value across global markets.
