Crypto Faces Uncertainty As Trump’s ‘Short-Term Pain’ Unfolds
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U.S. President Trump has vocalized his acceptance of recent economic difficulties, which puts risky assets, including Bitcoin (BTC) and the broader cryptocurrency market, under increasing pressure. according to Wire Through the Kobeissi letter on X, President Trump’s strategy is designed to tolerate significant “short-term pain” to reduce inflation and promote $9 trillion in U.S. debt refinancing.
Will cryptocurrencies survive Trump’s “short-term pain” strategy?
The impact on cryptocurrencies is immediate and obvious. Although U.S. stocks are estimated to have a market value of $5 trillion this year, digital assets have also suffered huge losses. Bitcoin (BTC) has dropped about -23% since President Trump took office on January 21, and Ethereum (ETH) has dropped about -43%, and the wider cryptocurrency market has experienced even greater price drops.
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Although high volatility is nothing new in cryptocurrencies, the synchronous decline shows that crypto assets are not immune to macroeconomic forces. “Based on our research, President Trump came to this conclusion before taking office. However, he began to express it formally on March 6. Here is the title that destroyed investor confidence in 2025. President Trump is no longer the “stock market president” (for now).
Kobeissi’s letter pointed out that on March 9, President Trump further confirmed his position, pointing out that the United States is in a “transitional period” which will “take a little time” which means willingness tolerate recent market turmoil. During this period, Minister of Commerce LutnickThe March 6 statement “the stock market does not drive the results of this administrator” – followed by remarks from Finance Minister Bessent, “not worried about a little fluctuation.”
Although Kobeissi Letter’s analysis points to the government’s views before the inauguration were consolidated, it cites President Trump’s urgent focus in 2025, when $9.2 trillion of U.S. debt will mature or need refinancing. The thread notes: “First, as we have pointed out before, the United States is facing a massive refinancing mission. In 2025, $9.2 trillion U.S. debt Will mature or need refinancing. The fastest way to lower prices before huge refinancing is a recession. ”
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In addition to debt issues, Kobeissi’s letter highlights the government’s momentum to lower oil prices and the U.S. trade deficit, part of the same economic calculation. Oil has fallen more than 20% since President Trump took office. “In addition, the clear definition of President Trump’s strategy is to lower oil prices. Oil prices have fallen 20%+ since Trump took office. Citigroup said this morning that oil prices fell to $53, which would lower inflation to 2%. What would lower oil prices? Recession.”
At the same time, the government Wide use of tariffsThe Kobeissi letter described it as “a tariff imposed on nearly all U.S. trading partners,” a removal of GDP growth estimates, further suggesting that a deliberate slowdown is underway.
The Kobeissi letter also noted: “Most importantly, the Governor and Trump are trying to cut a large number of government jobs. These jobs are the jobs that have “grown” most of the U.S. jobs have increased by 2 million in the past 4.5 years. Cutting these jobs will stimulate recession.” Governor General leader Elon Musk appears to have quit the short-term decline. Even after Tesla (TSLA) recorded its seventh largest history on March 10, Musk said it was “good for the long term”.
For crypto traders and investors, Trump’s “short-term pain” situation currently determines price action. The question raised by analysts at Kobeissi’s letter is whether this will lead to a more favorable economic landscape in the long run. “Is short-term pain worth ‘long-term gain’ in President Trump’s economic strategy?”
At press time, BTC prices were still under huge downward pressure and were trading for $82,000.
Featured images from Shutterstock, charts from TradingView.com
