According to PANews, Rob Hadick, a general partner at Dragonfly, has shared his outlook on macroeconomic trends, predicting that the Trump administration may deliberately steer the U.S. economy into a recession. His analysis suggests this move could serve as a justification for reducing welfare programs, foreign aid, government spending, and imports—factors traditionally seen as key drivers of economic growth.
Strategic Economic Shifts and Inflation Concerns
Hadick anticipates that after an initial economic downturn, the administration could introduce major tax cuts, quantitative easing (QE), golden visa programs, and manufacturing subsidies to stimulate recovery. However, he warns that inflation remains a critical risk, with market expectations divided on Federal Reserve interest rate cuts.
If economic conditions worsen significantly, Federal Reserve Chair Jerome Powell may be forced to lower rates or resort to unconventional monetary easing, potentially leading to rising inflation and higher prices for risk assets. Hadick also expressed concerns over strained U.S. relations with global allies, suggesting that certain policy decisions could heighten the likelihood of ‘black swan’ financial events.
Impact on the Cryptocurrency Market
Despite increasing adoption and improving fundamentals, macroeconomic instability may continue to weigh on token prices in the short term, Hadick stated. However, he believes that once macro conditions improve, cryptocurrencies could be among the first asset classes to rebound.
Hadick remains optimistic about stablecoins, predicting their continued rapid growth, and advises investors to adopt a long-term volatility trading strategy amid the current economic uncertainty. As traditional financial markets face turbulence, digital assets may emerge as a key hedge against economic downturns.