US Market Downturn: Billionaire Trump Backers, Including Musk, Face $209 Billion Loss; Bitcoin Hits Four-Month Low
The U.S. stock market has experienced a significant downturn following the start of Donald Trump’s second term, with the S&P 500 and Nasdaq indices witnessing steep declines. This has resulted in a collective loss of $209 billion for five prominent Trump-supporting billionaires, including Elon Musk and Jeff Bezos. Musk’s wealth has been notably affected due to declining Tesla sales in key markets like Germany and China. This economic uncertainty has prompted a shift towards safer assets, such as U.S. Treasuries, while European and Chinese equities have seen gains. The turmoil in traditional markets has also spilled over to the cryptocurrency space, with Bitcoin dropping to a four-month low. Investors are advised to exercise caution and consider reducing leverage until market conditions stabilize.
Bearish
The combined market downturn and shift towards safer assets due to political and economic uncertainty, especially from a leading economy like the U.S., tend to exert negative pressure on high-risk assets like cryptocurrencies. Historically, such conditions lead to a retreat in crypto investments due to reduced risk appetite among traders, impacting Bitcoin and other digital assets negatively. As a result, the crypto market may continue to face downward momentum until broader economic and political clarity is achieved.