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Markets are holding their breath. After months of threats, April 2nd is finally here, the day new Trump tariffs kick in, and global trade could change overnight. Stocks are shaky, Bitcoin is down 30%, and gold keeps hitting records. Who knows, this might also be part of a bigger plan.
Let’s unpack what’s happening, where markets could go next, and how to turn this chaos into wins.
Why Trump’s Tariffs Aren’t Random
The question arises, “Is Trump really insane, or is there a sort of a plan behind the madness?” It is our opinion that this is all fairly planned. Tariffs, in our opinion, serve to:
- Stress on all partner countries to help the US negotiate better deals and improve the trade deficit
- Put the economy into a mini-slowdown, which in turn slows down real inflation (the one outside of tariffs)
- Get stocks lower to a reasonable level
To emphasize it more, the US isn’t just slapping tariffs on imports for fun. The goal is to push countries like China into better trade deals, cool down rising prices, and pull stocks and crypto back to “cheap” levels. Even the Fed gets roped in, which means lower rates become more likely if the economy stumbles.
History tells us that Trump loves this game. He’ll likely turn up the heat if markets rebound, then ease off when they crash. Europe’s already blinking, as Germany admits tariffs could wreck their economy, and deals are getting renegotiated.
We view all of the above as a high-stakes game of poker that could cost many trillions of dollars, but a game of poker nonetheless. We think we will see Trump slow the rhetoric and even reverse rhetoric as markets drop further and upon recoveries see him push the gas on the pedal again. This is not too dissimilar to what happened during his first term.
Stocks and Crypto: How Far Will They Fall?
Stocks are down 10-12% from their highs, but they might drop another 10-15%. Big names like Tesla, Apple, and Meta could become bargains fast. Moreover, Bitcoin has dipped to $75K (one third of its peak), while smaller coins are getting crushed. However, on the flipside, Bitcoin is still up 300% since late 2020.
April 2nd could be the turning point. Markets often fall to the bottom when bad news “finally” arrives, keeping the “buy the rumor, sell the news” in mind. However, the panic seems to have started already because, for obvious reasons, there’s no clarity yet,
Gold, the Fed, and the “Crash”
Gold’s soaring on tariff fears, but don’t get too comfortable. In 2020, it crashed by 20% when the Fed stepped in during COVID-19. A similar thing happened in 2011 when it dropped 50% after the financial crisis. If the Fed cuts rates again, gold could nosedive. The smart idea is to trade the surge but keep an exit plan.
Why This is a Golden Opportunity for XBTFX Traders
At XBTFX, we believe volatility is something to capitalize on rather than fearing. There will be many opportunities for traders ahead, so it’s your chance to take advantage of the big and upcoming event. To cut out your task, XBTFX gives you the tools to act fast:
- Stock CFDs: Grab Tesla, META, or Apple at irresistible prices.
- Crypto: Buy Bitcoin’s dip or short-sinking altcoins.
- Forex: Profit from dollar swings as tariffs shake currencies.
- Gold & ETFs: Hedge your bets with commodities or indices.
With low fees, 100+ assets, and leverage up to 500:1, this might just be your moment to put your best foot forward. Start trading today.
Closing Thoughts
Stocks and crypto are nearing bargain territory. Gold’s rally could flip fast. And every headline will swing forex markets. This tells us that April 2nd isn’t just any other date but a trigger for many areas of the trading world.
The question is, are you ready for it? The best traders don’t predict. They prepare. It doesn't really matter how the new tariffs play out because XBTFX lets you trade both the chaos and the recovery.
FAQs
Why is Everyone Freaking Out About April 2nd?
April 2nd is the deadline for new US tariffs, which could spark trade wars, inflation, and Fed rate cuts. Markets hate uncertainty, so stocks and crypto are dipping in advance. It’s good to prepare for swings in stocks like Tesla and ETFs.
Should I Sell My Crypto Before Tariffs Hit?
Bitcoin’s dip to $55K looks scary, but it’s still up 300% since late 2020. Tariffs could push it lower short term, but long term, BTC often rebounds after Fed policy shifts (like rate cuts). If you’re trading, it’s a good idea to use CFDs to short-term swing trade.
Are Tariffs Actually Good for Precious Metals?
Short-term, yes. Gold loves fear (tariffs = inflation worries), BUT tariffs could backfire. If the Fed cuts rates to stabilize markets, gold might crash like it did in 2020 (-20%) or 2011 (-50%). Trade the spike with XBTFX’s XAU/USD pairs, but don’t marry your position.
