With over $5 trillion wiped off global stock markets since Trump's tariffs were announced

Panicked by the ferocious market reactions, on Friday, the president called on Federal Reserve Chairman Jerome Powell to cut interest rates

The threat of a potential recession has loomed large as over $5 trillion was wiped off global stock markets since Trump’s tariffs were announced on April 2, impacting the world’s biggest hedge funds and sparking panic among economists.

As the markets await critical tariff decisions that could decide the fate of the floundering U.S. economy, the president is panicked by the ferocious market reactions.

On Friday, Trump called on Federal Reserve Chairman Jerome Powell to cut interest rates, adding that it’s “the perfect time” to do so on his Truth Social platform.

However, Powell prefers to remain steady, foreseeing in an interview with the Wall Street Journal on Friday that the aggressive tariffs policy will lead to slower growth and rising inflation.

The tariffs are likely to cause a temporary surge in inflation, which could become more persistent and make it premature to adjust monetary policy without clearer economic signals.

Some critics (including Trump) argue that Powell is too cautious, potentially missing the window for timely rate cuts.

Trump’s same Truth Social post stated: “He [Jerome Powell] is always ‘late,’ but he could now change his image, and quickly… CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”

But Powell emphasizes that the Fed is not in a hurry and prefers to wait for clearer economic signals before making policy adjustments. This cautious approach is driven by concerns over inflation, a persistent issue he expects to see exacerbated by the tariffs.

Despite Trump’s call for immediate action, Powell remains focused on maintaining inflation stability; a stance that might disappoint investors hoping for swift rate reductions.

The Dow Jones Industrial Average hemorrhaged more than 2,200 points on Friday, adding to the previous day’s decline of 1,679 points to mark the worst two-day performance in history. The Nasdaq and S&P500 also saw their steepest drops since COVID.

However, Bitcoin remained largely unaffected by the stock market crashes. At press time, BTC is trading at around $83k, having slightly gained in price over the past 24 hours.

This is in stark contrast to the Dow Jones Industrial Average, which has wiped out all of its returns since March 2024, while Bitcoin has managed to gain around 30 percent in the same period, according to Rajat Soni, a CFA charter holder and Bitcoin and finance analyst.

And Tether CEO Paolo Ardoino simply stated that “Bitcoin is the hedge.”

As the world hangs by a thread in anticipation of tariff negotiations, retaliations, or rate cuts to avoid a potential economic armageddon, many are maintaining their eyes on Bitcoin, which seems to have shaken off its longstanding correlation with the stock market and other global risk-on assets.

As the Dow Jones Industrial Average continues to bleed and the U.S. flounders on the brink of a recession, many are looking toward Bitcoin as a potential hedge against the impending economic doom and gloom.

The Dow Jones Industrial Average hemorrhaged more than 2,200 points on Friday, adding to the previous day’s decline of 1,679 points to mark the worst two-day performance in history. The Nasdaq and S&P500 also saw their steepest drops since COVID.

However, Bitcoin remained largely unaffected by the stock market crashes. At press time, BTC is trading at around $83k, having slightly gained in price over the past 24 hours.

This is in stark contrast to the Dow Jones Industrial Average, which has wiped out all of its returns since March 2024, while Bitcoin has managed to gain around 30 percent in the same period, according to Rajat Soni, a CFA charter holder and Bitcoin and finance analyst.

And Tether CEO Paolo Ardoino simply stated that “Bitcoin is the hedge.”

As the world hangs by a thread in anticipation of tariff, retaliation, and rate cuts to avoid a potential economic armageddon, many are maintaining their eyes on Bitcoin, which seems to have shaken off its longstanding correlation with the stock market and other global risk-on assets.

According to Unchained’s Director of Market Research Joe Burnett, now may be one of the best times to build a meaningful bitcoin position.

“Trump’s tariffs are here, U.S. equities are crashing, and China is retaliating. Now may be one of the best times to build a meaningful bitcoin position. Not financial advice.”

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