The renewed tensions over customs tariffs between the U.S. and China shook not only the stock markets but also the cryptocurrency market. While there were sharp declines in many cryptocurrencies, including Bitcoin, investors moved to the sidelines with concern. U.S. President Donald Trump is no stranger to such economic turbulence; looking at his past statements, it is even possible to say that he seems pleased with such crisis periods. In fact, some believe that Trump knows how to take advantage of economic shocks.
The Harsh Tariff Decision Shook the Markets
The new customs tariffs announced by the Trump administration last week created a shock effect in the financial world. The tariffs, dubbed 'Liberation Day Tariffs', particularly led to a renewed increase in economic pressure on China. Following this, sudden value losses in traditional markets also caused panic among cryptocurrency investors. Bitcoin saw a significant drop in a few days, while Asian stock markets were also affected by the decline. For example, the Tokyo Stock Exchange's Nikkei 225 index started the first trading day of the week with a nearly 10% drop.
Trump downplayed these fluctuations by stating, 'I do not want the global markets to collapse, but sometimes you have to take the bitter medicine to fix something.' The President's words were perceived by some investors as an approach that downplays the significance of the crisis. On the other hand, Trump's remarks have sparked new discussions reminding that he is accustomed to turning crisis moments into opportunities.
He Has Always Had a Good Relationship with Bad Economies
Trump's interesting relationship with economic crises dates back years. In the 2012 documentary 'The Men Who Built America' aired on History Channel, he explicitly stated how he profited from poor economic conditions. In that program, he stated, 'I do better in bad times. Because then you can buy things cheaply. In good economies, you either buy very expensively or not at all,' which has been widely discussed.
The President's remarks have empowered critics questioning Trump's current policies as these statements resurface. Some experts suggest that Trump intentionally triggered market instability to gain personal profits during these times. His supporters argue that these strategies are implemented to strengthen the U.S. economy in the long term. However, past examples increase the number of those claiming that Trump has benefited not only politically but also financially from economic turbulence.
Cryptocurrency Investors on Alert
The sharp decline in the cryptocurrency market, along with global markets, is slowly turning into a collapse. Experts believe that larger declines may be on the horizon due to increasing global uncertainty and political tension. Especially, the volatile movements of Bitcoin in recent times have unsettled investors seeking safe havens. Experts state that such volatile movements carry political implications that cannot be explained solely by technical analysis.
When Trump's past statements are combined with his current policy moves, some analysts consider this part of a deliberate strategy. Markets like cryptocurrencies, which are unregulated, become even more fragile during such high uncertainty periods. This reduces investor confidence in the market while increasing the influence of political figures.