High-risk assets such as tech stocks and crypto have been selling off heavily over the past month or so as Donald Trump’s trade war escalates. However, this could all be part of a “short term pain” masterplan in a strategy that aims to lower inflation and refinance around $9 trillion of US debt by allowing market weakness. The administration appears unified in this approach, with Commerce Secretary Howard Lutnick stating, “Stock market not driving outcomes for this admin,” Treasury Secretary Scott Bessent he’m “Not concerned about a little volatility.” Elon Musk also appears to support this strategy, saying Tesla stock “will be fine long-term” despite TSLA tanking 40% since the beginning of this year.
Source: Martin Young, 2025-03-14; https://cryptopotato.com/will-trumps-short-term-pain-plan-result-in-long-term-gains-for-crypto/