Market Madness: Is Trump’s Tariff Pause Just a Really Expensive Cat Trick?

by

Hold onto your investment hats, folks! President Donald Trump just pressed pause on most of his tariffs, and the stock market is partying like it’s 1999—if 1999 involved a lot of data spreadsheets and crypto dreams. But wait! 🎉 Experts are yelling “dead cat bounce!” like it’s the latest TikTok dance move!

After Trump’s prior genius idea of slapping a whopping 104% tariff on China, the markets decided to take a nosedive faster than my motivation to hit the gym on a Monday morning. 🚀📉

Is the Crypto Market Surge Just Another Dead Cat Bounce in Disguise?

BeInCrypto dropped the bomb that Trump’s temporary tariff timeout doesn’t even include China. So, while we’re all celebrating, let’s remember: those tariffs are now at a shocking 125%! 🐉

But let’s forget about that for a moment! The market is buzzing like coffee on a Monday morning. In the last 24 hours, the total cryptocurrency market cap did a little jig up by 5.5%. Bitcoin (BTC) has reclaimed the legendary $80,000 mark, so let’s retire “Bitcoin is dead” and go for “Bitcoin is just taking a catnap.” 💤💸

And look at Ethereum (ETH), XRP, and Solana—they’re getting double-digit gains while investors are feeling optimistic again. Time to break out the confetti! 🎊

But wait, y’all! There’s a catch. Jacob King, our market magician from WhaleWire, warns that this tariff delay is like baiting a mouse back into a trap. 🐭🍫

“We’ve officially entered the dead cat bounce phase: delay the tariffs, bait the retail crowd back in, and set the stage for the next red wave,” he tweeted, probably with a cup of coffee in hand.

The espresso-fueled predictions suggest retail investors might be running to the market while institutions quietly chuckle, using the moment to “dump their bags”—I mean, that sounds like a fun Saturday night! 😬

“If Trump continues to play his tariff cards, the rally will represent nothing more than a dead cat bounce,” Steve Hanke, the economics professor, said. Is he referring to actual cats? Because I sense a theme here.

Some investors are planning to hit the road to avoid losses. Now that’s a solid plan—do we need to call U-Haul for this? 🚚

“This is the 90-day dead cat exit bounce. sell in may and go away,” another analyst wrote, probably while contemplating their life choices.

Meanwhile, Amit, our eternal optimist, has a hot take. He suggests that this time we have real reasons for market optimism! Say what? 🙌

“The difference here, and why selling into the rip *might* not be the best, is that if tariffs are truly delayed—well folks, we have a fundamental catalyst for the markets,” he pointed out, sounding way more positive than I feel before my morning coffee.

He stresses that the first 10% tariffs were already baked into the cake. If the 90-day pause turns into a permanent vacation with a side of negotiations with China, we might just bake a new pie altogether! 🥧

“We also sold off a ton assuming these tariffs would be in effect. Jobs data is fine. If tariffs aren’t the issue, not saying we need to visit 7000 SPX anytime soon, but it may not be a dead cat given this catalyst could be long-lasting,” Amit concluded, leaving me wondering if we should start putting together a grocery list for this market feast.

Speaking of dead cats bouncing, the term itself is trending like it’s a celebrity dating drama! It has shot up in searches since the pandemic, and I can’t help but wonder if there’s a reality TV show in there somewhere. 🤔

Now, if you remember the glorious times of quantitative easing (QE), the markets went on a wild recovery ride then too. The Fed might just dust off those old QE playbooks again, which could affect the financial circus, including crypto. 🙃

And get this: Arthur Hayes, former CEO of BitMEX, thinks Bitcoin might moonshot to $250,000 by the end of 2025. 🚀 Now that’s a number worth talking about—where do I sign up?

Read More

2025-04-10 11:16