Donald Trump’s mass rates Continue to send shock waves in global markets, including the cryptography market. Interestingly, a similar development with tariffs occurred twice in the past, and history suggests that they could have long -range consequences, even more than predict financial experts.
What happened the last time similar events such as Donald Trump’s rates occurred?
In a X publicationThe market commentator, Stacy, revealed that events similar to Donald Trump’s tariffs have occurred twice in US history before. It is said that the first was in 1828, and the second was in 1930, with Trump rates doing the third. He pointed out that the last two caused depression, which represented a period of mass global economic recession.
Market experts have already predicted that Donald Trump’s mass tariffs could have massive impacts on the market, starting with The economy of the United States. Goldman Sachs has increased its probabilities of a 35%recession. Meanwhile, the chances in the prediction market market show that there is a great possibility that a recession will occur this year, a development that is bassist for the cryptography market.
The market is already negatively reacting to Donald Trump’s massive rates. Bitcoin fell from As high as $ 88,000 to around $ 81,000 in the back of Trump’s announcement, while Altcoins enter the territory of the Bear market. It is also worth mentioning that the stock market suffered a loss of $ 2.85 billion yesterday, its worst record in four years.
Developments in the Stock market They are significant, since it is known that Bitcoin shares a strong positive correlation with the actions. If the stock market continues to slide, Bitcoin could be at risk of an additional accident. These price accidents undoubtedly provide information on how the global economy could suffer a mass recession, such as the last twice that similar events such as Donald Trump rates occurred.
Fed could intervene
Mikybull Crypto cryptographic analyst has predicted that United States Federal Reserve It will probably take a step to follow Donald Trump’s mass tariffs. He believes that they will reduce interest rates and introduce a stealthy type of quantitative flexibility (QE), especially with the growing probabilities of a recession this year. Such movement of the Fed could relieve the market and relieve the current uncertainty of the market.
Before now, the Central Bank of the United States has remained firm to facilitate monetary policies, and the president of the FED, Jerome Powell, states that Donald Trump’s rates could make inflation increase. However, the US economy is more likely to enter a recession than to witness increasing inflation, so Powell and FOMC can be forced to intervene.
Interestingly, Trump has urged the Fed to reduce interest rates On several occasions, some argue that tariffs are one of the ways in which they seek to force their hands. An interest rate cut is optimistic for the cryptography market, since it could inject more liquidity into cryptography assets and lead to another Toro race.
At the time of writing this article, the price of Bitcoin is traded at around $ 82,600, more than 1% in the last 24 hours, according to data of coinmarketcap.
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