Macro Monday: $BTC Crashes Below $65, Hard Assets Unfazed

Once again, commodities and hard assets reign supreme as global markets succumb to tariff threats and the looming uncertainty of an AI-dominated economy.

After the Supreme Court’s ruling that Donald Trump’s tariffs were illegal, the U.S. President has doubled down on his strategy. A blanket 10% tariff hike quickly diffused the optimism that came from Friday’s Supreme Court ruling, inflicting a sharp sell-off across stocks and crypto during the US Futures Open on Sunday.

Amidst the uncertainty, investors are seeking shelter in commodities and hard assets. Gold and crude oil continue to show strength with the U.S. and Iran holding a third round of talks on Thursday. 

Supreme Court Ruling Escalates Tariff Drama

Backed by the Supreme Court’s 6-3 ruling that Trump’s tariffs were illegal, the prospect of a $150B tariff refund, roused TradFi markets towards the end of Friday’s trading. 

The optimistic flare was quickly extinguished, however, when the U.S. President rebuked the Court’s position, adding an additional 10% on all existing tariffs.

In retaliation to the theatrics, the European Parliament is set to freeze the pending trade deal approval between the U.S. and the EU. This marks the second occasion that the ramification vote has been suspended, which was delayed the first time following Trump’s threat to annex Greenland. According to the US Census Bureau, the EU represents the largest share of U.S. imports, signifying the importance of the proposed deal to both entities.

Global markets see-sawed at US Futures open, with $BTC briefly crashing below $65,000, flushing out over $500M in liquidations across all crypto assets in 24 hours. $SOL didn’t fare much better in the unwind, dropping as low as $77 before reclaiming the $80 level. 

Despite its decline, CoinShares data indicates that $SOL recorded its 3rd consecutive week of Digital Investment Product inflows, outperforming majors like $BTC and $ETH.

With certain crypto F&G indexes hitting new all-time lows, thought leaders remain optimistic in the industry’s long-term health and potential.

Hard Assets Show Resilience as U.S.-Iran Approach Deal

While crypto and other ‘risk-on’ asset classes were dealt a tough blow amidst the volatility, commodities were completely unfazed. 

Precious metals have brushed off their flash crash to continue a bullish trend, with gold reclaiming $5,100/oz and silver exchanging hands at $86, up 2% in the session.

Meanwhile, crude oil is pushing its highest price since August 2025. With the U.S. and Iran scheduled to hold talks in Geneva on Thursday, markets are optimistic that a uranium enrichment deal can be reached and conflict between the two nations averted.

AI Doomerism Sows Fear Among Traders

Crypto Twitter natives are once again debating the impending impact of artificial intelligence on the global economy. A thesis published by macro researcher Citrini outlining economic collapse as a result of AI proliferation has divided the crypto community, renewing the philosophical and existential threat of AI.

Citrini’s thesis forecasts a complete restructuring of the existing economic system, which the analyst predicts could collapse by 2028. According to Citrini’s research, AI automation rapidly replaces human workers faster than newly created jobs can re-employ them.

This allegedly snowballs into a negative feedback loop, where companies continue to show strong growth and economic output while households and individuals get poorer. Without the high consumer spending that comes from a high-salaried workforce, the prevailing economic model begins to collapse.

While many have commended Citrini’s thesis as a timely and precise warning, some experts aren’t willing to accept the prognosis. 

Bloomberg ETF analyst Eric Balchunas argues that quantitative easing could ease the landing, while others have decried the thesis as nothing more than sensationalized doomposting.

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