The cycle just got extended
1 min read
This dip is not localized. It’s a systemic derisking phenomenon happening across all markets including US indexes, Europe, Asia, etc.
Why?
Trump tariffs and growth scare.
Trump could have triggered a global trade war in his attempt to bully the rest of the world into his negotiation table. But EU, Canada and China doesn’t seem to be backing down.
This brings in a lot of macroeconomic uncertainty.
That’s why the 10 year treasury yields are falling rapidly. Which is a flight to safety play.
This brings in a hard reset of a frothy market environment and a much needed one as we’ve had two stellar years of gains.
The fed has priced out rate cuts due to hot CPI but now we should see them turn back to a dovish stance.
We could likely see a month or two of chop before Trump goes into trade negotiations which could reverse the adverse effects of the tariffs.
For now we have more local tailwinds like the BTC strategic reserve and deregulation. The cycle is far from over. Instead this dip has confirmed cycle extension.
Good times are coming. HODL
submitted by /u/ultron290196
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