Gold and Bitcoin decline simultaneously by 3.6% and 4.6%, respectively, as the global market faces stagflation shocks.

Gate News: On March 19, a certain cryptocurrency research institution reported that escalating geopolitical conflicts combined with a hawkish Federal Reserve have caused a stagflation shock in global markets. Regarding oil prices, Brent crude (the international benchmark) rose 7%, WTI crude increased 4.2%. In the stock market, the S&P 500 index fell 1.45%, the Nasdaq dropped 1.25%, and the Russell 2000 index declined 1.64%. Metals saw declines as well, with gold down 3.6% and silver down 4.9%. The US dollar and Treasury yields also moved higher, with the dollar index up 0.76%, the 10-year Treasury yield rising 6.5 basis points, and the VIX volatility index surging 17% to 25. In the crypto market, Bitcoin fell 4.6%, and Ethereum dropped 5.2%.

On the macro front, Iran threatened to strike Gulf energy facilities after Israel attacked its largest gas field; Qatar’s Ras Laffan Industrial City confirmed missile damage; oil transportation through the Strait of Hormuz remains 98% below pre-conflict levels; the Pentagon requested over $200 billion in special war funding for Iran from the White House; the Federal Reserve kept interest rates unchanged but still expects one rate cut this year, although PPI (Producer Price Index) data exceeded expectations (0.7% month-over-month vs. 0.3%).

Markets are experiencing a stagflation shock driven by oil, with energy shocks and unexpectedly high PPI combined with a hawkish Fed creating positive feedback loops, pushing the dollar higher and yields up. Risk aversion has spread across all asset classes. Gold and Bitcoin are declining in tandem, confirming a broad risk-off trend.