A prominent economist, Alex Krüger, is sounding the alarm about the US economy, claiming President Trump’s policies are leading to a major crisis.
Trump’s Tariffs: A Recipe for Disaster?
Krüger, who boasts a large following on X (formerly Twitter), argues that Trump’s tariffs are causing a massive sell-off of US assets. He describes the situation as “economic suicide,” comparing the current market turmoil to the coronavirus crash of 2020. He believes that unless Trump significantly reduces tariffs, a serious recession is highly likely, potentially leading to Democratic wins in midterm elections and even impeachment.
Bitcoin’s Unexpected Rise
Interestingly, Krüger notes that Bitcoin (BTC) might be decoupling from the traditional stock market. While stocks are plummeting, Bitcoin is experiencing a surge, leading Krüger to speculate on a possible long-term shift in the cryptocurrency’s role in the market.
Three Possible Economic Scenarios
Krüger outlines three potential economic scenarios for the coming months:
- Best-Case Scenario: A deal with China and reduced tariffs lead to a strong market rebound.
- Worst-Case Scenario: High tariffs remain, mirroring the economic downturns of 2022 or 2008. This could result in a market bounce followed by further declines and a recession.
- Middle Ground: A mix of the above two scenarios, resulting in a volatile market.
He predicts a Bitcoin price increase, potentially reaching $92,000 before a correction. At the time of writing, Bitcoin is trading at $88,062, up 4.3% in the last 24 hours.
Disclaimer: This information is for general knowledge and does not constitute financial advice. Always conduct thorough research before making investment decisions./p>