Economist Alex Krüger is sounding the alarm, predicting a significant economic slowdown in the US. He’s even adjusting his own investments to reflect this concern.
A Looming Recession?
Krüger, who boasts a large following on X (formerly Twitter), believes the US is in the very early stages of a serious economic downturn, possibly even a recession. He forecasts this downturn will become noticeable around June, with clear evidence showing up in economic data by July.
Bitcoin as a Hedge?
Interestingly, Krüger sees Bitcoin (BTC) as a potential safe haven investment during this period. While acknowledging his bias, he suggests Bitcoin might offer a unique risk profile, acting as a blend of a traditional risk asset and a safe haven asset like gold. However, he admits the long-term outlook remains uncertain.
Uncertainty Ahead: Trump’s Impact
Krüger highlights the significant uncertainty introduced by the Trump administration’s policies. He acknowledges the possibility of both a strong bull market and a sharp market crash, similar to 2008, depending on the direction and intensity of Trump’s economic policies, such as potential tax cuts. His base-case scenario is somewhere in between these two extremes, but he emphasizes that Trump’s policies have introduced a level of risk not normally present.
Altcoin Caution
Krüger advises against jumping into altcoins right now. He warns against the fear of missing out (FOMO) in the current climate, predicting multiple market dips are likely.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before making any investment decisions.
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