As Trump unveils new agreements with Chinese trading partners, his remarks about a temporary halt on tariffs are making headlines. The United States has entered a challenging phase, and if discussions surrounding tariffs do not conclude soon with acceptable conditions, the situation may worsen. The renowned billionaire warns of severe consequences for cryptocurrencies in this evolving scenario.
Recession or Depression for the U.S.
On February 26, as the seriousness of the tariffs became apparent, I commented that “Trump will show death before agreeing to malaria; first, he will kill and then bury.” This prediction transitioned into something entirely different due to the indecisive tariff rates and the inability to maintain high-profile statements for more than a few days.
Trump initially showcased the direst possibilities, then officially imposed even worse conditions, and now he is softening his stance with trading partners to avoid deterioration. However, he maintains that this is also temporary. This suggests that the commentary on “burying” could very well imply a potential future for the U.S. economy. The U.S. economy could face severe blows and risk losing its trading partners to China.
In an interview on NBC’s Meet the Press, the founder of Bridgewater Associates mentioned that Trump’s aggressive pursuit of tariffs could lead to a “disruption of the monetary order.” Dalio, known for predicting the 2008 recession, argues that the dollar is at significant risk.
Worse still, this could have devastating consequences for the global economy, potentially leading to a major international conflict.
“Such a collapse occurs only once in a lifetime.”
Trump, who is somewhat prepared for a recession, has stepped back in light of the possibility of a collapse or depression. But is this enough?
The Future of Cryptocurrencies
The U.S. is heading towards recession, inflation forecasts are being revised upwards, and bonds are not correctly pricing in this retreat, while Trump tries to maintain his firm stance despite stating that the retreat on electronic tariffs is temporary.
Trump has only a few months left, and it appears that his uncertain and erratic tariff strategy will only weaken the U.S. economy. Investors are approaching the dollar and U.S. bonds with caution in this unpredictable market environment. This indicates that fear is being fueled by the potential for a U.S. collapse.
Cryptocurrencies do not thrive in uncertain environments, and since almost all Bitcoin $94,883 investors view it as a quick profit opportunity, we are not aligned with its philosophy as a safe haven. It wouldn’t be surprising for cryptocurrencies to lose strength during this process, while gold could perform relatively well, as Trump must prevent such a scenario. Currently, the fate of the U.S. economy is intertwined with that of cryptocurrencies, and significant measures should be taken within 1-2 months to alleviate the effects of this chaos. In the short term, the outlook for cryptocurrencies is negative; however, it appears positive in the medium term. If Trump continues his stubborn behavior, the outlook for everything will be negative, signaling the start of a potential third world war on the economic front.