Crypto Shines as U.S. Consumer Sentiment Falls, BTC, SOL, and AVAX Surge

Recent economic data reveals a steep decline in U.S. consumer sentiment, dipping to a three-year low amid escalating U.S.-China trade tensions and heightened inflation fears. Traditional safe havens such as U.S. government bonds and the dollar have experienced significant volatility, with dramatic moves in the treasury yields and the dollar index. In contrast, the cryptocurrency market has demonstrated resilience with Bitcoin trading just above $82,000 and recording a 4% gain over the previous 24 hours. Altcoin majors Solana (SOL) and Avalanche (AVAX) led the charge with gains of 6% each, and the broad-market CoinDesk 20 Index also saw a 3% rise. Analysts suggest that while some view the surge in U.S. bond yields as an economic risk, others attribute market instability to highly leveraged positions, which may be prompting forced liquidations rather than reflecting fundamental shifts. This divergence in market behavior is contributing to the upward momentum in cryptocurrencies, as investors seek alternatives during this period of traditional market uncertainty.