Since Donald Trump’s election in November last year, the S&P 500 has erased all its gains, with yesterday’s closing price dipping below the critical 200-day moving average for the first time since November 2023. Tesla suffered a staggering 15.43% drop, marking its steepest decline since September 2020. Since hitting an all-time high of $479.86 on December 17 last year, the stock has halved, wiping out over $800 billion in market capitalization.

Bitcoin Dips Below $77,000, Fear and Greed Index Hits Extreme Fear

The cryptocurrency market has also taken a hit. Bitcoin reached a low of $76,600 around 9 a.m. this morning, though it has slightly recovered to $78,625 as of this writing, reflecting a 24-hour decline of approximately 3.69%. The price has nearly returned to levels seen when Trump won the U.S. election last year, hitting a four-month low. Mainstream altcoins, including Ethereum, have also been hammered, with Ethereum dropping to a low of $1,750—a more than 10% decline—marking its lowest level since October 2023. According to Alternative data, the Fear and Greed Index has plummeted to 24, signaling "extreme fear."

Ed Yardeni: A Bear Market Cannot Be Ruled Out

Amid the current market turmoil, Ed Yardeni, a well-known Wall Street bull and president of Yardeni Research in New York, has suggested that a bear market may already be underway. "We can’t rule out the possibility that a bear market started on February 20, the day after the S&P 500 rose to a record high," he wrote in a note to clients on Sunday.

"And we’re wondering whether Trump Tariff Turmoil 2.0 might trigger a rare kind of flash crash unaccompanied by a recession," he added on Monday. Those “flash crashes,” could be like those seen during 1962 and 1987, which happen fast and reverse just as fast, he said.

When’s the Right Time to Act?

Regarding investment strategies, aggressive traders may look to buy the dip during market pullbacks. However, for more risk-averse investors, the best approach might be to wait until central banks begin easing monetary policies before taking action. While this strategy may not catch the absolute bottom, it can help avoid prolonged market consolidation and potential unrealized losses.

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.