The Dow Jones closes flat after a volatile session, while Bitcoin surges to a new all-time high, signaling diverging momentum in stocks and crypto
The Nasdaq Composite increased by 0.28%, the Dow Jones Industrial Average remained unchanged, and the S&P 500 experienced a 0.04% decline.
The legislation, which is anticipated to increase the federal deficit by nearly $4 trillion, comprises substantial tax reductions and increased military expenditures, as projected by the Congressional Budget Office.
After last-minute modifications, such as expanded deductions for state and local taxes, intended to persuade conservative legislators, it was approved by the House by a single vote. The measure is currently en route to the Senate.
An additional increase in Treasury yields moderated investor sentiment. The 30-year bond momentarily surpassed 5.16%, its highest level since 2023, before gradually declining.
The benchmark 10-year yield also experienced a modest decrease, settling at 4.55%.
According to analysts, the earlier sell-off in Treasurys was exacerbated by lackluster demand at Wednesday’s 20-year bond auction, and concerns regarding debt sustainability continue to exist.
“Short term, the tax bill is good for the economy,” stated Jed Ellerbroek of Argent Capital. “However, in the long term, it contributes to the deficit, which is detrimental to markets.”
Bitcoin consistently achieves all-time highs.
In anticipation of a Trump donor event that significant crypto holders will attend, Bitcoin extended its enormous rally, trading above $111,000, amid optimism regarding Senate progress on stablecoin regulation.
In contrast to previous bull runs, derivatives traders experienced minimal enthusiasm during Bitcoin’s recent rally. Analysts observed that the gains were driven by spot market demand rather than speculation, as evidenced by moderate favorable sentiment and long/short ratios and liquidations.
