The effects of Trump's recent tariff escalation and Goldman Sachs' updated forecasts affect the US economy and the cryptocurrency market.
Pessimistic Outlook for the US Economy
Goldman Sachs has downgraded the US GDP growth forecast from 2.0% to 1.5% and expects inflation at 3.5%. The financial giant also predicts an increase in tariffs by 15 pp by 2025.
Countries' Response to New Tariff Policy
Canada and China have already announced reciprocal tariffs. The EU and Mexico have also stated their intentions to take countermeasures. Many countries prepare for stricter US tariff policies.
Bitcoin Decline Amid Gold's Rise
Bitcoin has fallen nearly 23% in the last 60 days, while gold has reached new highs. Investors are shifting to more stable assets like gold amid market uncertainty.
Economic instability and US tariff policy are negatively affecting the cryptocurrency market while gold serves as a safe haven.
