Crypto Weekend Crash
Gold rips through $4000
Silver outperforms
Buying the dip in Stocks!
Crypto traders were blindsided over the weekend as Donald Trump’s threat to impose 100% tariffs on Chinese imports sparked one of the largest digital-asset selloffs in history. Around $400 billion (£300bn) in market value was erased in less than a day, sending Bitcoin and Ethereum tumbling double digits and triggering forced liquidations across exchanges. The move highlights how tightly crypto remains linked to macro risk sentiment, despite its “hedge” narrative. With futures markets already signalling 6% declines ahead of the Asian open, both the Bank of England and global traders are bracing for potential contagion as risk aversion ripples through broader markets.
Gold finally smashed through $4,000 last week, a milestone that’s been coming for months. Safe-haven flows, central bank buying, and a fresh wave of US–China trade tension lit the fuse.
Friday’s session was a textbook shakeout, a quick 2.5% drop into support, then an aggressive rebound as buyers piled back in. That kind of price action doesn’t happen in weak trends. It’s conviction. This week kicked off with fresh highs and that familiar “buy the dip” rhythm. As I’ve said before, trying to pick the top in this market is asking for pain. The next technical target sits around $4,150, and even the big names, Goldman Sachs among them, are calling for $4,900 by end of next year.
Silver’s not sitting quietly either. It’s outperforming again. Since Friday’s gold dip, gold’s up roughly 3.5%, while silver ripped 7% in the same window. Silver’s still the more accessible trade for many retail investors, and right now, it’s showing stronger legs than its big brother.
Equities took traders on a wild ride too. The major indices dropped around 3.5% on the trade war headlines, only to bounce back 2.5% as Trump reassured markets that China “will be fine.” That rebound speaks volumes, the trend is still strong, dip buyers alive and well, and risk appetite intact.
FX Side
- RBNZ delivered the expected cut to 2.5%, sending the Kiwi to six-month lows. Markets are now pricing in an 82% chance of another cut next meeting.
- JPY remains soft, political uncertainty in Japan has pushed back expectations for any rate hike.
- USD is holding firm, helped by a shaky Euro (thanks, France) and a mix of safe-haven flows.
Looking Ahead
It’s a relatively quiet macro week, with US Retail Sales and PPI on Thursday the only real catalysts. Traders will be watching inflation data closely, weaker numbers could reignite talk of faster Fed cuts, and that could pressure the USD. The Fed’s balancing act between employment and inflation isn’t getting any easier. Labor data’s been spotty, inflation sticky, and the continued partial Government lockdown hasn’t helped transparency as the latest Non Farm Payroll report was postponed yet again. The lack of visibility makes things trickier for traders and policymakers alike.
The Takeaway
Last week’s swings are a reminder to stay nimble. Strong trends are your friend, trade with them, not against them. I’m widening stops, taking smaller chunks, and letting the market work for me.
That’s exactly what we drill into with PropIQ, how to read momentum, manage risk, and trade with clarity when the market gets noisy. This week, stick to your setups, stay flexible, and trade what you see, not what you think.
Disclaimer
This market commentary is provided for educational and informational purposes only. It reflects the opinions of the author at the time of writing and should not be taken as financial or investment advice.
Funded Trading Plus operates evaluation and simulated funded programs, not live trading accounts. All references to trading, strategies, or market opportunities relate to simulated trading environments. Past market performance or individual trader results are not indicative of future outcomes.
About Andrew Lockwood
Andrew Lockwood is a seasoned professional trader with over 40 years of experience in financial markets. Starting his career on the floor of the London International Financial Futures Exchange (LIFFE) in the 1980s, Andrew has traded through multiple market cycles and volatility regimes. Today, he specialises in prop trading strategies, focusing on technical setups, risk management, and trader psychology. As the founder of PropIQ and a leading mentor, Andrew is dedicated to training the next generation of prop traders with proven, real-world trading methods.