The cryptocurrency market is struggling due to the Federal Reserve’s choice to delay rate cuts, rising tensions in the Middle East, and reduced chances of Donald Trump 
Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President the so-called “crypto president,” winning the upcoming November election.
Here’s all the updates you need – summed up.
Market Crash on the Horizon?
Austin from Altcoin Daily is sounding the alarm about a possible market crash. Over $2.9 trillion has been wiped out from the stock market, marking the largest single-day loss since the COVID crash in 2020. This steep decline is driven by fears of a global recession, particularly as we enter the 10th consecutive quarter of Federal Reserve tightening. Historically, such tightening usually leads to a recession after about 10 quarters, putting us at a critical point.
What is the Fed Up To?
The Federal Reserve’s recent decision to pause interest rate cuts has sparked a lot of discussion. Some experts believe the economy would have benefited from a smaller cut sooner, while others think the Fed made the right choice to avoid another inflation crisis like the one in the 1970s. The Fed’s upcoming September meeting is becoming increasingly important as central banks around the world start cutting rates. There is concern that delaying rate cuts could lead to a more severe economic downturn in the fourth quarter.
Early Recession Signs Emerge!
Signs of a recession are becoming clearer. McDonald’s has reported its first sales drop since 2020, showing economic strain. Various consumer sectors, including the auto industry, are dealing with excess inventory and shrinking profit margins. Rising unemployment rates are adding to the economic pressure.
Bitcoin Shows Unexpected Stability
Despite the downturn, Bitcoin has shown surprising stability. While it has faced a minor drop, it has performed better than many altcoins, which have suffered significant losses. On the positive side, institutional support for Bitcoin is growing. For example, Morgan Stanley is now offering Bitcoin ETFs to its high-net-worth clients, highlighting Bitcoin’s increasing acceptance and potential even during market turmoil.
Trump’s Bold Bitcoin Proposal
Former President Donald Trump has proposed using Bitcoin to help pay off the U.S. national debt. This bold idea emphasizes Bitcoin’s potential role in financial strategies and discussions about national debt.
What’s Next for Bitcoin?
As we navigate this uncertain period, Bitcoin’s role as a financial asset is under close examination. While institutional support provides some hope, market volatility is expected to continue. The next few months will be crucial in determining Bitcoin’s place in the U.S. economy.
With economic uncertainty on the rise, Bitcoin’s stability and growing institutional interest could be interesting to watch.
Also Check Out: Bitcoin Strategic Reserve Bill Receives Huge Support; 2200 Letters Sent To Senators To Support The Bill