{"id":3511,"date":"2025-03-15T06:00:30","date_gmt":"2025-03-15T06:00:30","guid":{"rendered":"https:\/\/ad-doge.com\/blog\/crypto-faces-uncertain-future-as-trumps-short-term-pain-plan-unfolds\/"},"modified":"2025-03-15T06:00:30","modified_gmt":"2025-03-15T06:00:30","slug":"crypto-faces-uncertain-future-as-trumps-short-term-pain-plan-unfolds","status":"publish","type":"post","link":"https:\/\/ad-doge.com\/blog\/crypto-faces-uncertain-future-as-trumps-short-term-pain-plan-unfolds\/","title":{"rendered":"Crypto Faces Uncertain Future As Trump\u2019s \u2018Short-Term Pain\u2019 Plan Unfolds"},"content":{"rendered":"

US President Trump\u2019s outspoken acceptance of near-term economic hardship has placed risk assets\u2014including Bitcoin (BTC) and the broader crypto market\u2014under mounting pressure. According to a thread<\/a> by The Kobeissi Letter on X, President Trump\u2019s strategy revolves around tolerating significant \u201cshort term pain\u201d in order to drive down inflation and facilitate the refinancing of over $9 trillion in US debt.<\/p>\n

Will Crypto Survive Trump\u2019s ‘Short-Term Pain’ Strategy?<\/h2>\n

The impact on cryptocurrencies has been immediate and pronounced. While US equities have shed an estimated $5 trillion in market value this year, digital assets have also suffered steep losses. Since President Trump\u2019s inauguration on January 21, Bitcoin (BTC) has declined by approximately -23%, Ethereum (ETH) has tumbled by roughly -43% and the broader crypto market has experienced even more dramatic price drops.<\/p>\n

Although high volatility is nothing new in crypto, the synchronized downturn suggests that crypto assets are not immune to macroeconomic forces. The Kobeissi Letter adds, \u201cBased on our research, President Trump made this conclusion BEFORE inauguration. However, he began formally articulating it on March 6th. Below is the headline that destroyed investor confidence in 2025. President Trump is no longer the \u2018stock market\u2019s President\u2019 (for now).\u201d<\/p>\n

The Kobeissi Letter points to March 9 as the date President Trump further confirmed his stance by noting that America is in a \u201cperiod of transition\u201d and that it will \u201ctake a little time,\u201d implying a willingness to tolerate near-term market turbulence. During this period, Commerce Secretary Lutnick\u2019s statement on March 6\u2014\u201cStock market not driving outcomes for this admin\u201d\u2014was followed by Treasury Secretary Bessent\u2019s remark, \u201cNot concerned about a little volatility.\u201d<\/p>\n

Although The Kobeissi Letter\u2019s analysis notes that the administration\u2019s viewpoint solidified before inauguration, it cites President Trump\u2019s urgent focus on the year 2025, when $9.2 trillion in US debt will either mature or need to be refinanced. The thread states, \u201cFirst, as we have previously noted, the US is facing a massive refinancing task. In 2025, $9.2 TRILLION of US debt will either mature or need to be refinanced. The quickest way to LOWER rates ahead of this colossal refinancing would be a recession.\u201d<\/p>\n

Beyond debt concerns, The Kobeissi Letter also highlights the administration\u2019s drive to reduce oil prices and the US trade deficit as part of the same economic calculation. Since President Trump took office, oil has fallen by over 20%. \u201cFurthermore, a clearly defined part of President Trump\u2019s strategy has been to LOWER oil prices. Oil prices are down 20%+ since Trump took office. This morning, Citigroup said oil prices falling to $53 would lower inflation to 2%. What would lower oil prices? A recession.\u201d<\/p>\n

Meanwhile, the administration\u2019s extensive use of tariffs, which The Kobeissi Letter describes as \u201clevying tariffs on almost ALL US trade partners,\u201d is chipping away at GDP growth estimates, further hinting that a deliberate slowdown is in motion.<\/p>\n

The Kobeissi Letter also notes, \u201cOn top of this, DOGE and Trump are attempting to cut TONS of government jobs. These are the same jobs that have accounted for much of the recent job \u2018growth\u2019 in the US. Government jobs have risen by 2 million over the last 4.5 years. Cutting these jobs will spur a recession.\u201d DOGE leader Elon Musk appears resigned to short-term declines. Even after Tesla (TSLA) recorded its seventh-largest historical drop on March 10, Musk posted that \u201cIt will be fine long-term.\u201d<\/p>\n

For crypto traders and investors, the \u201cshort term pain\u201d scenario by Trump is currently dictating the price action. The question, the analysts from The Kobeissi Letter posit, is whether this will lead to a more favorable economic landscape in the long run. \u201cIs the \u2018short term pain\u2019 worth the \u2018long term gain\u2019 in President Trump\u2019s economic strategy?\u201d.<\/p>\n

At press time, the BTC price remained under heavy downward pressure and traded at $82,000.<\/p>\n

\"Bitcoin<\/p>\n","protected":false},"excerpt":{"rendered":"

US President Trump\u2019s outspoken acceptance of near-term economic hardship has placed risk assets\u2014including Bitcoin (BTC) and the broader crypto market\u2014under mounting pressure. According to a thread by The Kobeissi Letter on X, President Trump\u2019s strategy revolves around tolerating significant \u201cshort term pain\u201d in order to drive down inflation and facilitate the refinancing of over $9…<\/p>\n","protected":false},"author":1,"featured_media":3512,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[22,28,51,53,254,55,462,1581,1905],"class_list":["post-3511","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency-market-news","tag-bitcoin","tag-bitcoin-news","tag-crypto","tag-crypto-news","tag-cryptocurrency","tag-cryptocurrency-market-news","tag-donald-trump","tag-trump-tariffs","tag-us-recession"],"_links":{"self":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts\/3511","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/comments?post=3511"}],"version-history":[{"count":0,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts\/3511\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/media\/3512"}],"wp:attachment":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/media?parent=3511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/categories?post=3511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/tags?post=3511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}