A closely followed economist says US President Donald Trump is plunging the country into one of the most significant periods of economic turmoil in recent history.
Alex Krüger tells his 209,200 followers on the social media platform X that Trump’s tariff policies are causing a massive selloff of US assets.
“The US is trying to commit economic suicide and everyone is dumping US assets in response. The tarifacrash is the second most insane financial event in modern history (coronacrash was the first).”
Source: Alex Krüger/X
He warns that Trump needs to reverse course on the tariffs – otherwise, an economic recession is highly likely.
“If Trump does not greatly reduce tariffs [there are] high odds the US goes into a serious recession [and then there are] high odds Dems win midterms by a landslide [creating] high odds they impeach Trump, roll tariffs back and plunge the US towards socialism. It is in everyone’s interest to reach an agreement.”
Krüger also says that Bitcoin (BTC) may be decoupling from the stock market as the flagship crypto asset is breaking out at the start of the week while stocks are plummeting.
“I’m open to the possibility that it may be finally happening. Bitcoin taking on its final form. Either that or somebody is levering up on longs for some other reason.”
The analyst recently laid out some possible economic scenarios in the coming months, one that includes a BTC rally to the $92,000 level.
“Time to use my crystal ball.
- Scenario 1: 10% tariffs for most plus deal with China by early July. Markets rip.
- Scenario 2: high tariffs with Europe and China remain in place. Can use 2022 or 2008 as templates. Markets now coming out of June 2022 or October 2008. Bounce, then pain and lower lows a few months out. Particularly so as the economy starts rolling over and recession hits.
- Scenario 3: a roller coaster somewhere in between.
I’m betting on a BTC bounce since last week. Think once $88,000 breaks, we see $92,000 fast. That would be an ideal place to get out and re-evaluate.”
Bitcoin is trading for $88,062 at time of writing, up 4.3% in the last 24 hours.
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