How markets reacted to news like this before

The COVID-19 outbreak sent investors rushing into cash. The Fed made an emergency cut to 0–0.25% (15 Mar 2020) and launched unlimited QE.

Lesson: In a true panic even gold gets sold, because everyone wants dollar cash. Once central banks step in with money, risk assets and gold often rebound hard. Watch for central-bank rescue announcements.

US inflation surged and the Fed raised rates by a total of 4.25% within one year (from 0–0.25% to 4.25–4.50%).

Lesson: In a rising-rate cycle the dollar is usually the winner, while assets that rely on cheap money (growth stocks, crypto) tend to struggle. When the Fed keeps signalling tightening, be careful trading against the dollar trend.

One of the world's largest crypto exchanges ran out of liquidity and filed for bankruptcy; users could not withdraw funds.

Lesson: Crypto-specific news can be severe without touching other markets. Never keep all your money on one exchange, and watch for news about an exchange's finances or unusual withdrawals.

Silicon Valley Bank was shut down after a bank run, and markets worried it would spread to other regional banks.

Lesson: Banking crises make markets bet on Fed easing, which helps gold and BTC. With news like this, watch how quickly the government and the Fed step in with guarantees.

The US SEC approved ETFs that hold actual bitcoin for the first time, opening the door to institutional money.

Lesson: Good news that the market expects is often sold when it is announced. But if the news genuinely changes how money can flow in, the medium-term trend can stay positive.

The Fed began cutting from 5.25–5.50% to 4.75–5.00%, more than part of the market expected.

Lesson: The first rate cut is usually already priced in; what happens next depends on the following economic data. Don't assume the dollar will weaken for long just because the Fed cut once.

The US announced import tariffs on almost every country and markets feared a recession, before most tariffs were paused for 90 days on 9 Apr.

Lesson: Policy announcements from leaders can be reversed quickly, so volatility runs both ways. Trade smaller and don't place stop-losses too tight around news like this.

A threat of 100% tariffs on China hit while the market was heavily leveraged, four days after BTC set a record of $126,198 (6 Oct 2025).

Lesson: Bad news that arrives when leverage is high pushes prices far below fundamentals. Use low leverage and don't go all-in near fresh all-time highs.