- Bitcoin drops below $85K as hopes for crypto-friendly policies fade.
- Tesla’s stock plunges 40% since Trump’s election, losing European market share.
- The US dollar weakens as Trump’s tariffs raise inflation fears.
- Tax cuts could save Americans money, but experts worry about economic risks.
The so-called “Trump Trade” is falling apart. Bitcoin, Tesla, and the US dollar are all taking a hit as markets react to Trump’s policies—or lack of them.
Bitcoin had surged past $100,000 when Trump won the election, but now it’s dropped below $85,000. Analysts say weak support between $90K and $70K could mean more losses ahead. Many crypto investors feel let down, as Trump hasn’t followed through on his promises to support Bitcoin and ease crypto regulations.
TRUMP PROMISED US A STRATEGIC #BITCOIN RESERVE.
HE GAVE US A TRADE WAR INSTEAD.
WHAT KIND OF SCAM IS THIS!!! pic.twitter.com/TR2DtcHHbe
— Crypto Rover (@rovercrc) February 26, 2025
“Trump promised us a strategic Bitcoin reserve. He gave us a trade war instead,” wrote crypto analyst Crypto Rover.
Tesla is also in trouble. The stock has crashed 40% since Trump’s election and fell another 4% on February 26. Investors are worried that Elon Musk’s political distractions and tariffs on car imports are hurting Tesla’s business. In Europe, Tesla sales dropped 45% in January, even though electric car sales in the region grew by 37%.
The US dollar is struggling too. At first, markets welcomed Trump’s economic plans, but now his aggressive trade policies are raising red flags. His newly announced tariffs on Canada, Mexico, China, and the EU have sparked inflation fears, putting pressure on the dollar.
Trump’s Trade War Shakes Markets
Trump just announced a new wave of tariffs—25% on Canada, Mexico, and the EU, 10% on China, and possibly 100% on BRICS nations. This could make everyday goods more expensive, leading to a fresh wave of inflation.
This means we are now set to see:
1. 25% tariffs on Canada
2. 25% tariffs on Mexico
3. 25% tariffs on the EU
4. 10% tariffs on China
5. (Potential) 100% tariffs on BRICSMarkets are now pricing-in a rebound in inflation as prices on many goods are expected to rise.
— The Kobeissi Letter (@KobeissiLetter) February 26, 2025
“Markets are now pricing in a rebound in inflation as prices on many goods are expected to rise,” noted The Kobeissi Letter.
Gold and Bitcoin usually move together as safe-haven assets, but right now, they’re going in opposite directions. Gold is up 10%, while Bitcoin has fallen 10%, leaving investors unsure where to put their money.
Amid all this chaos, Trump’s new tax proposal is causing debate. A study by Dancing Numbers suggests that replacing income taxes with import tariffs could save the average American up to $325,000 in lifetime taxes. Some states—like New Jersey, Connecticut, and New York—could see six-figure tax savings.
But not everyone is convinced. Critics argue that relying on tariffs could make inflation worse, forcing Americans to pay more for everyday goods.
Trump’s Trade War 2.0 is here! 🚨
🔹 25% tariffs on Canada, Mexico & EU
🔹 10% on China
🔹 🚀 100% tariffs on BRICS?This could shake global markets! Volatility is the new normal, and US inflation may stay high—rate cuts? Not so soon.
How will markets react? 👇#MarketCode…
— Jagadish (@jgvl86) February 27, 2025
“This could shake global markets! Volatility is the new normal, and US inflation may stay high—rate cuts? Not so soon,” posted one investor on X.
With Bitcoin, Tesla, and the US dollar all slipping, the “Trump Trade” is facing a serious reality check. The big question now is whether Trump can turn things around—or if this is just the beginning of a bigger financial shake-up.
