The so-called “Trump Trade” faces a meticulous examination as a Bitcoin (BTC), Tesla (TSLA) and the US dollar all experience significant declines.
The initial enthusiasm for the pro-commune policies of President Donald Trump has faded, leading to the disappointment of the financial markets.
Bitcoin, Tesla and Us Dollar show a sharp drop
Bitcoin, who had exceeded $ 100,000 in the middle of optimism for a second Trump administration, has now fallen below $ 85,310. Market analysis highlights a solid lack of support between the range of $ 90,000 and $ 70,000, which argued concerns about additional cooling.
The strong fall comes as merchants react to the lack of concrete action by President Donald Trump to facilitate cryptographic regulations despite previous promises. Crypto analyst and Crypto Rover influencer summed up disappointment on social networks.
“Trump promised us a Bitcoin strategic reserve. Rather, he gave us a trade war, ”wrote the analyst.
Tesla, often considered a barometer of the so-called “Trump Trade”, experienced a sharp decline. Its stock, TSLA, has been down almost 40% since its peak after Trump’s electoral victory. The electric vehicle giant fell by almost 4% on February 26 only. This drop has extended a sequence of defeats that saw its stock drop by 24% for the year.
Investors are increasingly concerned about the fact that Tesla is sidelined by the accent put by CEO Elon Musk on federal reforms. In addition, Musk’s polarizing political position harmed Tesla’s performance in Europe, where sales dropped by 45% in January, despite the overall increase in sales of electric vehicles in the region by 37%.
Similarly, the US dollar and the yields of the Treasury, which were initially strengthened in the expectations of Trump’s economic policies, are now in decline. Analysts cite fears that Trump’s aggressive trade policies – in particular his newly announced prices – could not lead to an inflation resurgence while slowing economic growth.
The impact of Trump’s trade war
Kobeissi’s letter, a well -known financial analysis point of sale, stressed the wide impact of Trump’s aggressive commercial position. The president recently announced scanning prices, including 25% in Canada and Mexico, 25% on the European Union, 10% on China and a price of 100% potential on the Nations of the BRICS.
These prices should increase the cost of goods in the United States, with inflation expectations and analysts warning that it could double from its recent stockings.
“The markets are now prices in an inflation rebound, because prices on many goods should increase,” observed Kobeissi’s letter.
Meanwhile, one of the most striking trends in the financial markets is the strong divergence between bitcoin and gold. While Gold has recently increased by 10%, Bitcoin dropped by 10%, although it is historically considered as coverage against economic uncertainty.
In the middle of the market turmoil, a new study by Dancing Numbers suggests that Trump’s pricing plan could offer significant tax alternatives to the Americans. The study revealed that replacing income taxes with import prices could allow the average American of $ 325,561 in lifetime taxes.
If Trump’s price plan eliminates federal income taxes, residents of New Jersey, Connecticut and New York could save $ 146,160, $ 149,535 and $ 136 215 in their lifetime.
With many Americans who struggle under high tax charges, Trump’s proposal could represent a seismic change in the country’s financial space. However, skeptics fear that relying only on prices could increase inflation and create new economic challenges.
“It could shake up the global markets!” Volatility is normal new, and American inflation can remain high – rate cuts? Not so early, ”said Jagadish, a user on X.
Investors are wary of the greatest volatility because the markets adapt to Trump policies. The “Trump trade” faces its biggest test with inflation problems and key assets stand out.
Non-liability clause
In membership of the Trust project guidelines, Beincrypto has embarked on transparent impartial reports. This press article aims to provide precise and timely information. However, readers are invited to check the facts independently and consult a professional before making decisions according to this content. Please note that our terms and conditions, our privacy policy and our non-responsibility clauses have been updated.
