Both the US stock market and the crypto market are at a crossroads.
It looks like two major events are about to happen simultaneously—Trump's administration imposing a 10% tariff on the EU, coupled with the Supreme Court's final ruling this Tuesday on the legality of these tariff policies. When these two things collide, the market could experience intense volatility.
History has given us lessons. During the tariff escalation in October last year, the S&P 500 plummeted, and the cryptocurrency market experienced its worst decline in five years. That lesson is still fresh in our minds.
This time, the risks are even greater. Just the trade flows involve $1.5 trillion, and EU's retaliatory measures could directly cut off the US's position in key trade chains. This would be a heavy blow to US stocks and also a hit to the dollar.
The real sticking point lies in the legal ruling. The Supreme Court has only two options, but regardless of the outcome, neither is good:
If the court rules these tariff policies unconstitutional, the government’s credibility will be publicly shattered, and panic selling in the markets will follow. If it rules them legal, then the trade war will truly escalate, and the risks to economic growth will soar.
In simple terms: no matter what the ruling is, the market has reasons to crash. The tariff policies themselves are a landmine, and the Supreme Court’s decision is the fuse.
Be prepared. Volatility is no longer a possibility; it is inevitable.
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BottomMisser
· 15h ago
Haven't learned enough from last October's lesson? Coming back for more? A $15 trillion game—let's see who gives up first.
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BrokenYield
· 15h ago
ngl this is either a systemic risk goldmine or we're all just watching the correlation matrix blow up in real time... either way, somebody's gonna get liquidated hard
Reply0
memecoin_therapy
· 15h ago
Damn, this time it's really hopeless. Whatever the court rules, it all blows up.
Both the US stock market and the crypto market are at a crossroads.
It looks like two major events are about to happen simultaneously—Trump's administration imposing a 10% tariff on the EU, coupled with the Supreme Court's final ruling this Tuesday on the legality of these tariff policies. When these two things collide, the market could experience intense volatility.
History has given us lessons. During the tariff escalation in October last year, the S&P 500 plummeted, and the cryptocurrency market experienced its worst decline in five years. That lesson is still fresh in our minds.
This time, the risks are even greater. Just the trade flows involve $1.5 trillion, and EU's retaliatory measures could directly cut off the US's position in key trade chains. This would be a heavy blow to US stocks and also a hit to the dollar.
The real sticking point lies in the legal ruling. The Supreme Court has only two options, but regardless of the outcome, neither is good:
If the court rules these tariff policies unconstitutional, the government’s credibility will be publicly shattered, and panic selling in the markets will follow. If it rules them legal, then the trade war will truly escalate, and the risks to economic growth will soar.
In simple terms: no matter what the ruling is, the market has reasons to crash. The tariff policies themselves are a landmine, and the Supreme Court’s decision is the fuse.
Be prepared. Volatility is no longer a possibility; it is inevitable.