The Bitcoin course Device under pressure – as a direct sequence of Donald Trump’s current economic policy. The US stock markets also officially joined a bear market. What worries many: the risk of further price falls is enormous. Is the most difficult Baisse threatened us since the great depression of 1929?
Back then the Dow Jones Industrial Average Around 90 % of its value, which made the Baisse the most destructive in US history so far.
Fear of a gigantic bear market
A comparable scenario is not yet realistic – after all, Trump could theoretically quickly defuse the situation. The US Central Bank (FED) also has enough instruments to intervene if necessary.
But there are five important reasons why the risk of new price losses is currently particularly high:
- Import tariffs press corporate profits:
If the announced tariffs work, you could significantly burden the profits of many US companies in the coming months. - Countermeasures from abroad:
The uncertainty about possible economic policy reactions of other countries further increases the pressure. - Low consumer confidence:
The trust of US consumers is currently at a low-with potentially negative consequences for consumption and economic growth. - Decline of company trust:
The mood in the economy also clouds noticeably – a classic warning signal for upcoming swings. - Negative asset effect:
The US stock markets have lost around $ 10 trillion in market value within a short time. The feeling of being poorer brakes consumer expenses and could trigger a downward spiral: weaker economy → lower profits → even lower courses.
Capital escape into safe ports is missing
What also unsettles investors: Almost all investment classes are in a decline – stocks, bitcoin, gold, even bonds. At the moment, only the US dollar and a few other state currencies seem to be perceived as relatively safe.
In addition, the US Central Bank announced not to reduce interest rates in response to falling share prices. Money -political relaxation can only be expected with increasing unemployment or clear signals for a recession.
Is there still hope?
Of course – hope always remains. In phases of acute panic, it is difficult to recognize positive developments. The mood is extremely negative, and even cautious optimism currently seems out of place.
But one should not forget: Trump has only been back in office for almost three months. If he announces tomorrow to end the trade conflict, this could calm down the markets immediately. The problems would not be solved immediately – but the pressure would make it significantly.
The problem: Until then, irreparable damage could have occurred in the global economy. In any case, the current signals indicate that there is something fundamental in the Argen.
The hoped-for continuation of the Bitcoin bull market must therefore probably be postponed first.