'Concerns Rise as Bitcoin, Tesla, and US Dollar Witness Downturn Amid Trump Trade'
"The initial optimism surrounding President Donald Trump's economic initiatives is waning, sparking disappointment across financial sectors."
Bitcoin, once surging past $100,000 fueled by hopes for a second Trump term, has now dipped below $85,310, raising alarms due to weak support levels in the $90,000-$70,000 band. Various analyses point to potential further declines.
The abrupt drop follows tepid responses from President Trump regarding promised crypto regulations, a move Crypto Rover critiqued on social media, highlighting the absence of a "strategic Bitcoin reserve."
Likewise, Tesla, often emblematic of the 'Trump Trade,' faces a sharp decline, shedding nearly 40% since its peak post-election. The electric vehicle pioneer's stock, TSLA, suffered a 4% slump on February 26, continuing a downward trend with a 24% year-to-date dip.
Investor concerns mount as Tesla appears sidelined by CEO Elon Musk's focus on federal reforms, with European sales dipping by 45% in January amid Musk's polarizing political image. This contrasts with a 37% rise in electric vehicle sales in the region.
Simultaneously, the US dollar and Treasury yields, initially buoyed by Trump's economic pledges, are now faltering as fears of rising inflation and slowed growth loom. Trump's recent tariff announcements, including hefty levies on major trading partners, have triggered market jitters.
In response to rising inflation fears, financial analysts caution about potential price hikes on goods, with The Kobeissi Letter observing markets factoring in an inflation rebound.
The battleground between Bitcoin and gold spotlights the former's 10% decline against the latter's 10% ascent, defying Bitcoin's usual safe-haven narrative during economic uncertainties.
Amidst this turmoil, a new Dancing Numbers study suggests Trump's tariff strategy could yield substantial tax savings for Americans, notably replacing income taxes with import tariffs, potentially saving individuals significant sums over their lifetimes. However, concerns persist regarding likely inflation spikes and ensuing economic hurdles.
Market watchers, like Jagadish from X, brace for continued market volatility in the face of Trump's policies, signaling a pivotal juncture for the 'Trump Trade' amid inflation anxieties and shaky asset performances.