According to The Kobeissi Letter, the S&P 500 extended its losses to -1.1% today as investors remain cautious while awaiting updates on trade deal announcements (source: The Kobeissi Letter, May 6, 2025). This equity weakness has historically correlated with heightened volatility in major cryptocurrencies such as Bitcoin and Ethereum, as traders seek alternative assets during periods of stock market uncertainty. The current risk-off sentiment could drive increased short-term trading volumes and price swings in the crypto market as investors reposition their portfolios.

According to The Kobeissi Letter, the US imposed its largest tariff hike since 1930 at 12:01 AM ET, prompting China to retaliate with 15% tariffs. This escalation has resulted in a $2 trillion loss across the S&P 500 and cryptocurrency markets, impacting traders significantly.