The markets have been getting slammed in the last 24 hours with prices such as bitcoin falling over 9% down to $86,000. This would be the stagnate period we have been talking about for a while now where at some point it breaks down to either the upside or downside depended mainly on news.
Well the news... it hasn't been good and president trumps promises of making everything all dreamy and a golden era for US citizens at least in the short term feels like it's really falling apart.
However this short term thinking is what will get a lot of people in trouble and the smart ones grabbing up as much in assets as possible. As you see even with these hard crashes happening we continue to see the wealthy stock pile crypto.
- This article is for entertainment purposes only and is not financial advice. Do your own researching before investing and understand the risks and above all takes responsibility for your OWN actions and stop blaming others.
What The Markets Don't Like
Markets in general don't like uncertainty and they also don't like inflation, job losses etc as it stagnates the entire economy. This comes from mainly job losses and tariffs as being the biggest culprits at the moment. But there's also other major factors such as the USA losing it's dominance stance in the world.
The big news coming out in this sector is that Trump has announced that the USA will be starting their 25% tariffs on March 4th 2025 just about a week away now with the Canada and Mexico.
Now in theory this should bring money into the country mainly the government which should help to start offset the over spending plus with the recent cuts we should actully start to see positive factors start to happen but it's going to take at least another month for that to start to kick in.
You see even at 25% tariffs it's still very profitable for companies to continue to operate like they have been. That's just how high it is for production of items within the USA it's legit crazy. One of my businesses deals in just that and unless we saw a 100% and in some cases 200% tariffs I simply wouldn't change anything.
A buying op
If you're long term I feel like the short term price of bitcoin we could for sure see that dip into the $70,000 range again. However if you hold it for 3 years or even 5 years I think you'd still be well off and have profits. Now of course anything can happen but I highly doubt that someone the majority of big wigs out there holding 100,000 bitcoin themselves or more are not betting on it losing money long term and they have a rather sizeable stake in the game. Plus most of these people are the people in power to pass rules, laws and regulation to move their bags in the positive direction.
Banks want crypto they are just restricted still at the moment until the trump team starts to figure things out and pass some laws.
Why do banks love crypto?
Well they operate on fees and when you have a low to no fee market like crypto and you collect fees, interest etc on top of it by letting people trade through your bank well then that means money for the bank. The other thing is crypto trades a lot compared to stocks and that means even more fees as volatility and driving prices up and down on trading means more fees for banks to collect on each of those transactions.
The Dollar Eco
Right now the USD is actully too strong and it's causing issues around the world. The plan now by Trump is to actully weaken the dollar and the Fed most likely wont cut rates again any time soon especially with inflation coming back it just doesn't make sense for them to do it.
This would make assets like gold, silver and yes even bitcoin start to pull in higher prices and the global liquidity around the world to seriously start to open up. Again these things do not happen over night they will take months before you start to see action so think end of 2025 we should have a much clearer direction as to where those markets are headed but right now the bets are that bitcoin will be well off.