Trump is talking again about strong economic plans, including imposing additional tariffs on countries that impose taxes on American exports. He also mentioned that Congress is close to approving the largest tax cut in American history, describing it as a "rocket" that will boost the American economy.
This sounds great on paper, especially for local investors who might see rapid growth and higher profits, but the reality is that there is another side to the coin. Imposing tariffs could open the door to trade wars with countries like China and the European Union, at which point global markets could enter a whirlwind of major fluctuations.
As for cryptocurrencies, they are very sensitive to any economic tension or sudden decisions. If the American market really surges, we might see liquidity pumped into Bitcoin and Ethereum, but if things heat up economically or inflation rises and the Fed raises interest rates, these currencies will be negatively affected and enter a downward wave.
In short, what’s happening is that there might be local growth, but at the expense of global stability. If these policies are implemented without balance, they will create noise in the market, and the savvy investor is the one who knows when to enter and when to exit.
