#Trump100Days
these policies likely do increase market volatility—because ;
1. Trade Protectionism and Tariffs
Imposing 25% tariffs, especially across multiple countries, typically provokes retaliatory measures, disrupts global supply chains, and raises uncertainty for multinational businesses. This leads to:
• Increased costs for U.S. importers and consumers,
• Uncertainty in corporate earnings projections,
• Heightened geopolitical tension, especially if allies or major trading partners are involved.
These factors tend to fuel risk-off sentiment, where investors move out of riskier assets like equities and into safer ones like bonds or gold—spiking volatility in equity and currency markets.
2. Strategic Bitcoin Reserve
Establishing a Strategic Bitcoin Reserve is an unprecedented move for a national government and could have mixed market effects:
• On one hand, it might legitimize Bitcoin further as a store of value and hedge, boosting its price and adoption.
• On the other hand, it could spark speculative trading, add complexity to monetary policy, and cause further uncertainty around how the government will manage crypto assets—especially given Bitcoin’s intrinsic volatility.
3. Impact on Market Sentiment
Combining aggressive trade protectionism with a foray into volatile digital assets sends mixed signals to investors:
• The protectionist stance signals a shift toward economic nationalism and retreat from global integration,
• While the Bitcoin reserve suggests a pivot toward decentralized financial systems and away from traditional dollar dominance.
These tensions can increase policy unpredictability and amplify volatility across currencies, commodities, and equities.