One week after President Trump signed the executive order on "reciprocal tariffs," the US stock market experienced a two-day crash, with a market value of approximately $6.6 trillion evaporating. Trump, who seems to have "washed" the global market with tariffs, appears unconcerned and went to his private club in Florida to play golf.
On April 6th, while returning to Washington from Florida on Air Force One, he gave a media interview about the global market turmoil caused by the US stock market crash over the past week. His view on the current market plunge was "sometimes you must take medicine to solve problems." After Trump's "take medicine" remarks, Nasdaq 100 futures continued to decline, dropping over 6%. Can taking medicine really solve the problem?
Stock Market Meltdown, Crypto Crash
After Trump's "take medicine" remarks, global stock and cryptocurrency markets entered a waterfall-like plunge. The cryptocurrency market was severely hit this morning, with Bitcoin breaking below $78,000, down 6.89% in 24 hours. Ethereum dropped below $1,600, down 13.19% in 24 hours. SOL fell below $110, down 11.94% in 24 hours. According to Alternative data, today's crypto fear and greed index dropped to 23, with last week's average and yesterday both at 34, indicating a "extreme fear" market sentiment.
On April 7th, Kalshi, a prediction market where Donald Trump Jr. serves as a strategic advisor, predicted that the possibility of a U.S. economic recession in 2025 has surged to 68%, reaching its highest level in months. JPMorgan Chase apparently shares the same concerns, and according to Watcherguru, they are calling on the Federal Reserve to cut interest rates before the next meeting. Some traders believe this crisis could also be an opportunity. Top trader Eugene Ng Ah Sio posted on his personal channel, saying, "This downturn is an unprecedented turbulent situation not just for the cryptocurrency market, but for the entire stock market. I vaguely feel that if handled properly, this storm might create wealth that could change one's destiny. But right now, survival is key." Vida, founder of Formula News, believes that the current U.S. stock market is over-pricing expectations, similar to 2022, and this stock market pullback is similar to those in 2018 and 2022 - a cyclical occurrence happening every 2-3 years, rather than a financial crisis like those in 2008 and 2020 (which occur every 10 years). He predicts the market turning point will be in Q1 2026, during which he will gradually start purchasing stocks of tech companies he likes, and if the market experiences a major crash during this period, he will accelerate his buying pace. Regardless of how the market will develop, we have entered a period that requires conservative investment. Sometimes we may have to swallow this "pill", but how to escape risks after taking it is something every investor must learn.Welcome to join the BlockBeats official community:
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