Fun

Crypto Faces Uncertain Future As Trump’s ‘Short-Term Pain’ Plan Unfolds

News Feed - 2025-03-15 02:03:41

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Este artículo también está disponible en español.


US President Trump’s outspoken acceptance of near-term economic hardship has placed risk assets—including Bitcoin (BTC) and the broader crypto market—under mounting pressure. According to a thread by The Kobeissi Letter on X, President Trump’s strategy revolves around tolerating significant “short term pain” in order to drive down inflation and facilitate the refinancing of over $9 trillion in US debt. Will Crypto Survive Trump’s ‘Short-Term Pain’ Strategy?


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’s 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. Related Reading Crypto Bull Run Isn’t Over—It’s Just Changing, Says Analyst 2 days ago


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, “Based 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 ‘stock market’s President’ (for now).”


The Kobeissi Letter points to March 9 as the date President Trump further confirmed his stance by noting that America is in a “period of transition” and that it will “take a little time,” implying a willingness to tolerate near-term market turbulence. During this period, Commerce Secretary Lutnick’s statement on March 6—“Stock market not driving outcomes for this admin”—was followed by Treasury Secretary Bessent’s remark, “Not concerned about a little volatility.”


Although The Kobeissi Letter’s analysis notes that the administration’s viewpoint solidified before inauguration, it cites President Trump’s urgent focus on the year 2025, when $9.2 trillion in US debt will either mature or need to be refinanced. The thread states, “First, 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.” Related Reading Economic Turmoil: Crypto Market Loses 25% Of Value As Recession Worries Mount 3 days ago


Beyond debt concerns, The Kobeissi Letter also highlights the administration’s 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%. “Furthermore, a clearly defined part of President Trump’s 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.”


Meanwhile, the administration’s extensive use of tariffs, which The Kobeissi Letter describes as “levying tariffs on almost ALL US trade partners,” is chipping away at GDP growth estimates, further hinting that a deliberate slowdown is in motion.


The Kobeissi Letter also notes, “On 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 ‘growth’ in the US. Government jobs have risen by 2 million over the last 4.5 years. Cutting these jobs will spur a recession.” 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 “It will be fine long-term.”


For crypto traders and investors, the “short term pain” 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. “Is the ‘short term pain’ worth the ‘long term gain’ in President Trump’s economic strategy?”.


At press time, the BTC price remained under heavy downward pressure and traded at $82,000. BTC stalls below key resistance, 1-day chart | Source:BTCUSDT on TradingView.com Featured image from Shutterstock, chart from TradingView.com

News Feed

French watchdog fines Google 250M euros for AI IP infringement
Savannah Fortis10 hours agoFrench watchdog fines Google 250M euros for AI IP infringementBig Tech giant Google accepted a fine of 250 million euros from the French competition authorities on the grounds of a breach of EU
Bitcoin mining difficulty reaches new historical high as halving looms
Tristan Greene5 hours agoBitcoin mining difficulty reaches new historical high as halving loomsAmid new all-time highs in price and block rewards, the Bitcoin bull run of 2023–2024 continues.5068 Total views9 Total sha
Trump Family Threatens Legal Action Over Trumpcoin Crypto — Says ‘We Do Not Authorize the Use’
Trump Family Threatens Legal Action Over Trumpcoin Crypto — Says "We Do Not Authorize the Use" The Trump family has threatened legal action over trumpcoin, a cryptocurrency creat
An Unknown Individual Signed a Message Associated With BTC Block 1,018, Reward Was Minted 16 Days After Satoshi Launched Bitcoin
An Unknown Individual Signed a Message Associated With BTC Block 1,018, Reward Was Minted 16 Days After Satoshi Launched Bitcoin On Nov. 15, 2022, a post was created on the forum w
Paraguay to reconsider Bitcoin mining ban, mulls selling energy to miners
Brayden Lindrea4 hours agoParaguay to reconsider Bitcoin mining ban, mulls selling energy to minersParaguay’s lawmakers have proposed an alternative to a controversial Bitcoin mining blanket ban and are set to debate t
Microsoft launches AI-powered ‘Copilot for Finance’
Tristan Greene3 hours agoMicrosoft launches AI-powered ‘Copilot for Finance’The new service will provide automation features for the Microsoft 365 suite of productivity tools and applications.750 Total views52 Total
Solana Faces Make-Or-Break Moment As $1.77 Billion Unlock Looms
Este artículo también está disponible en español. In a technical chart shared today, crypto analyst Koroush Khaneghah, Founder of Zero Complexity Trading, underscores Sol
PEPE Price To Bounce 796% To New All-Time Highs In 2025? Here’s What The Chart Says
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Regulated ETH Futures? Not So Fast
Noelle Acheson is a veteran of company analysis and CoinDesk’s Director of Research. The opinions expressed in this article are the author’s own. The following article originall
Victoria’s Secret Files Metaverse Related Trademark Applications
Victoria"s Secret Files Metaverse Related Trademark Applications Victoria’s Secret, the renowned designer lingerie company, has filed a series of trademark patents that sugg
Bitcoin Price Deviates From Global M2 Money Supply, Is The Bull Run Over?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Ripple Sued by 13 Australian Banks for Trademark Infringement
Ripple Sued by 13 Australian Banks for Trademark InfringementRipple Labs Inc. is being sued in an Australian court for allegedly infringing a trademark belonging to several local ba