A X-Ray into the Financial Chaos Sparked by Trump's Tariffs
Ready the Parachutes
Investor Bill Ackman Advocates for a 3-Month Halting of Tariffs Amidst Slumping Cryptocurrency Markets
Markets are buckling under the weight of Donald Trump's latest trade policies, with cryptocurrencies taking a substantial hit alongside traditional investments. Bitcoin plummeted to $77,300, shedding a staggering $69 billion from its market cap, while Ethereum tumbled 14%, landing at $1,555.
This economic quake follows Trump's declaration of sharp new tariffs on foreign-made automobiles, a 10% "basic minimum" tariff on imports, and new "reciprocal" tariffs targeting countries impposing levies on American goods.
"Folks, we've been swindled for five decades," Trump growled from the White House Rose Garden last week. "But not anymore."
Market Mayhem
U.S. stock futures screamed downwards Sunday night, stoking dread of a wild market ride on Monday. S&P 500 futures dived 5.98%, whereas Nasdaq 100 futures nosedived 6.2%, and Dow futures plummeted 5.5%.
The cryptocurrency sphere, often seen as a mood barometer, is mirroring these losses. After Bitcoin had momentarily soared to $87,800 during Trump's tariff barrage on Thursday, it swiftly plummeted.
Tracy Jin, MEXC Exchange's COO, offers this warning: "The market is vulnerable to manipulation in its current state. This leaves room for disappointments to shake investor confidence... and this may further blur Bitcoin's status as a haven asset, resulting in a mass exit from ETFs."
Jin foresees Bitcoin tumbling to the "$52,000-$56,000 range" by summer, with Ethereum possibly enduring even steeper drops due to structural hiccups transcending the tariff predicament.
Ackman's Pervading Fear
Bill Ackman, the hedge fund guru and Trump supporter, has sounding a grim alarm about the possible fallout from the administration's trade agenda. In a series of X-based (previously Twitter) posts, Ackman has implored for a 90-day halt on the tariffs scheduled for mid-April.
"This isn't what we votes for," Ackman chimed. "Business sentiment is a game of hearts. The president's losing the trust of business titans globally."
Ackman advocates for temporarily pausing the tariffs, contending that without such a reprieve, the U.S. stands on the brink of an "economic apocalypse" that could crush investor confidence, sabotage investment, and trigger mass layoffs.
While acknowledging America's plight for centuries of oppressive trade practices, Ackman asserts the drawbacks of recklessly diving into tariff restrictions far surpass any advantages.
"By imposing immense and overblown tariffs on our partners and foes alike," Ackman railed, "we are in the process of wrecking confidence in our nation as a trade partner."
Ackman suggests this predicament offers Trump a window of opportunity for a temporary tariff freeze, allowing for negotiations to ensue. The alternative, he predicts, would be (to put it mildly) devastating: "Business investment will grind to a halt, consumers will slam their wallets shut, and we will irreversibly damage our reputation with the extended global community."
Ackman takes special interest in the potential damage inflicted on the working class, many of whom support Trump: "The repercussions for our nation and the countless citizens who have backed the president—particularly the working class who already bear the heaviness of economic distress—will be severe."
Many economists and experts have questioned the administration's tariff strategy. The formula being utilized—trade deficit divided by imports—has been flagged for its oversimplification and potential for counterproductiveness.
As markets prepare for Monday's opening bell, investors are nervously liquidating risky assets, with cryptocurrency liquidations burgeoning to a whopping $900 million, exacerbating market tension.
For cryptocurrency investors, the current market tumult raises questions about Bitcoin's stature as a haven asset during times of economic uncertainty and trade tensions.
- The current market chaos, triggered by Trump's tariffs, has led to significant losses in Bitcoin and Ethereum, with Bitcoin plunging to $77,300 and shedding $69 billion from its market cap, while Ethereum tumbled 14% to $1,555.
- Tracy Jin, COO of MEXC Exchange, warns that the market is vulnerable to manipulation and the losses in cryptocurrencies like Bitcoin and Ethereum may further question their status as safe haven assets, potentially leading to a mass exit from related ETFs.
- Bill Ackman, a hedge fund guru and Trump supporter, expresses concern about the potential fallout from the administration's trade agenda, imploring a 90-day halt on the tariffs scheduled for mid-April to prevent an "economic apocalypse" that could damage the nation's reputation as a trade partner, hinder investment, and trigger mass layoffs.
