The post Crashes Under 7K as Gold Wipes $4T appeared on BitcoinEthereumNews.com.

The S&P 500 traded lower than 7,000 (at 6,939.03) as of writing, extending losses after touching an all-time high above 7,000 for the first time in history late January. US equity futures weakened on Monday, with S&P 500 futures down 1.1% and Dow Jones futures sliding 0.9%, signaling a cautious start to the week.  The pullback followed Friday’s decline, when the S&P 500 and Dow Jones both lost 0.4%, while the Nasdaq Composite dropped 0.9%. After weeks of relentless upside momentum, risk appetite cooled sharply.  Was this overdue consolidation or the start of something deeper? Fed Leadership Uncertainty Pressures Equities Investor sentiment shifted after President Donald Trump nominated Kevin Warsh as the next Federal Reserve chair. Markets reassessed the outlook for monetary policy, balance sheet reduction, and Fed independence. Warsh, viewed as less tolerant of prolonged monetary accommodation, revived concerns that interest rates may remain restrictive for longer.  A hotter-than-expected US wholesale inflation report reinforced that view, reducing expectations for near-term rate cuts. The Federal Reserve’s role in balancing inflation control and economic growth remains central, and leadership uncertainty added another layer of volatility to already stretched equity valuations. Source: X Risk aversion intensified as gold and silver collapsed in a violent reversal. Gold traded near $4,773 per ounce as of writing, down sharply from its late-January peak near $5,600. Silver fell below $80 per ounce after reaching an all-time high of $121.64 just days earlier. The combined market value of gold and silver dropped by roughly $4.02 trillion in a single day on Monday, with losses exceeding $10 trillion over three sessions.  Gold erased over $7.4 trillion in market value, while silver shed nearly $2.7 trillion. These moves reflected forced liquidations rather than shifts in long-term fundamentals, yet the shockwaves rippled across global markets. Margin Hikes and Leverage Drive…

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Filed under: News - @ February 2, 2026 1:30 pm