Global Sell-Off Accelerates: Tech Stocks Cool, Volatility Climbs, and Caution Returns. Bitcoin Takes a Hit, and the Dollar Tightens Its Grip on EUR/USD as the Złoty Weakens
Markets Under Pressure
This week has been marked by a broad-based sell-off across global equity markets. Thursday’s trading session in the U.S. began with euphoria following Nvidia’s earnings, but ended with a sharp reversal: the Nasdaq fell by roughly 2.2%, the S&P 500 by 1.6%, and the VIX—widely viewed as the market’s fear gauge—spiked significantly in just two hours. Friday only amplified the nervousness: futures on the Nasdaq and S&P 500 continued lower, and the pressure on “AI growth” stocks persisted.
Europe followed Wall Street’s lead, with the Stoxx 600 declining—driven primarily by tech stocks. Asia also closed the week in the red, with both the Nikkei and Hang Seng posting declines. The narrative is decidedly negative: valuation concerns, choppy labour-market signals from the U.S., some deleveraging, and rising volatility. For now, the mood is more “risk reduction” than panic, but the balance of forces suggests shifting toward a defensive stance.
Crypto Takes a Hit
Bitcoin—supposedly a countercyclical asset—fell toward seven-month lows and is closing the week with a steep decline, once again proving that it doesn’t fully understand the concept of countercyclicality. On Friday, BTC fell another 6% to around USD 82,000 after breaking below USD 90,000 earlier in the week. That’s a roughly 13% drop for the week and more than 20% down in November.
The market message is clear: when deleveraging begins, the world’s largest cryptocurrency becomes about as appealing as a conversation about tariffs with the U.S. president. Bitcoin has fallen below its 50-day and 200-day moving averages—further discouraging trend-followers and amplifying volatility. The broader backdrop doesn’t help: after October highs above USD 120,000, capital has become more selective, and the sell-off in big tech is weighing on risk assets. Even industry insiders admit the market is undergoing a “clean-up” of positions and a healthy (albeit painful) correction after a long rally.
Złoty Overwhelmed by Risk-Off Sentiment
In the FX market, classic risk-off dynamics are visible, with capital moving into the U.S. dollar. The world’s main currency pair, EUR/USD, is inching closer to USD 1.15 and may well test that level today. This naturally implies weakness for the Polish złoty, which—despite having held up fairly well in challenging conditions earlier—now yields to dollar strength.
The dollar strengthened sharply on Friday, reaching around PLN 3.69, a five-grosz increase. Against the euro, the złoty has seen some choppiness, but it appears the common currency is on track to break above PLN 4.25. The PLN has had a surprisingly strong year, but the final stretch may prove turbulent—especially if global sentiment continues to deteriorate.
Source: https://managerplus.pl/risk-off-wraca-na-rynki-nasdaq-sie-zalamuje-btc-nurkuje-zloty-traci-do-dolara
