Tariffs, Bitcoin, and a Recession Walk into a Bar—Who Gets Burned?

by

Picture this: Anthony Scaramucci, once the guy whispering sweet nothings into Trump’s ear, now waves a caution flag bigger than a bad haircut, warning that America’s love affair with tariffs might just kick the economy into a ditch—while giving Bitcoin an unexpected leg up. Yep, you read that right. Bitcoin, the digital cowboy of assets, might just ride out this storm like a pro. 🤠

The markets are jitterier than a cat near a cucumber, fretting about what these tariffs could unleash. Traders are quietly muttering the dreaded “R” word—recession. And Scaramucci, founder of SkyBridge Capital and briefly Trump’s Communications Director (because everyone needs a colorful chapter in their résumé), decided to lay it all out in an exclusive chat with Saxo, shared first with crypto.news.

crypto.news: So the Trump tariffs are turning the economic pot into a boiling cauldron. Bitcoin is either your trusty life raft or a rickety rowboat ready to sink. What’s it going to be?

Scaramucci: Oh, absolutely yes! At least, that’s the short story. For the longer, soap opera-worthy version: Bitcoin was hanging out with the MAG7 and NASDAQ, basically the popular kids in finance school, and plummeted whenever they sneezed. But suddenly, over the last three weeks, it’s decided to play the rebel, acting more like gold—calm, shiny, and pretty much the chill friend you want during market chaos.

This sudden personality change? It’s thanks to Wall Street’s sales machine churning out inflows into BlackRock’s ETF and others. Let’s just say, Bitcoin’s dressing up for a gala instead of a brawl.

crypto.news: If tariffs keep slapping the economy’s face, who catches the worst bruises? Will the US limp the most, or will Europe and China end up with the black eyes?

Scaramucci: Here’s the cold splash of reality: these economies are more entwined than your favorite pair of earbuds. When the US sneezes, the world catches a cold. We saw this in the global financial crisis, and it’s not a one-time thing.

Interestingly, the FTSE and DAX (fancy European indexes) are acting like they’re at the cool kids’ table, outperforming the US since this trade war began. Translation? Long-term investors are giving America the side-eye, saying, “Not so fast.”

Now Germany’s talking about borrowing money to beef up its military—apparently, being prepared is back in vogue. That means their industries might cash in on some serious profits. The UK’s also flexing its muscles, probably dusting off the old armor. 🛡️

So, ironically, Trump’s tariff tantrum might just be handing Europe a booster shot while shaking up the US markets into unpredictability. Still, don’t pop the champagne—everyone’s going to feel the pinch sooner or later.

Read More

2025-04-25 17:36