Interesting: Bitcoin pulled us down nearly $30,000 at the beginning of the year, but the stock markets didn't follow suit back then. Now, we see the Nasdaq and S&P 500 following the same pattern. Yields on U.S. government bonds have risen, and suddenly, the stock market is also crashing. It seems as if Bitcoin has acted as a leading indicator here.

The crazy thing is: many trading desks monitor Bitcoin movements to gauge overall risk sentiment. When BTC drops, they often already know trouble is coming in the stock market. The 10-year bond yield is climbing to 4.41% – the highest since August – and that puts pressure on valuations. Borrowing costs are rising, companies are paying more for financing, consumers are facing higher mortgage rates.

Nasdaq futures have now fallen to their lowest levels since September, and S&P 500 E-Minis as well. Analysts are wondering if we're seeing a broader downturn. Some trading desks suggest that Bitcoin is at the beginning of an iceberg – if volatility in commodities continues, it could spill over into stocks.

Bitcoin itself has stabilized and is fluctuating between $65,000 and $75,000. But the fear is real – put options, or protective contracts against price declines, are at record highs. Anyone sitting at a trading desk must take this correlation seriously. The old theory that stocks and crypto are decoupled doesn't seem to hold right now.