#CryptoNewss DP US STRONG INCREASE – TRUMP SAYS DUE TO TARIFFS, WHAT DOES THE MARKET UNDERSTAND?

The US economic data recently released exceeded expectations significantly. Q3 GDP reached 4.3%, higher than the forecast of 3.3% and the previous level of 3.8%. Consumer spending (PCE) skyrocketed to 3.5%, indicating that household purchasing power remains very strong. PCE inflation is at 2.9%, in line with expectations – that is, high growth but not causing inflation shock.

Donald Trump believes that tariffs are the main factor driving these numbers. Although the viewpoint is still controversial, the market often looks at the financial consequences:

1. Strong economy → Fed unlikely to ease soon

High growth and consumption cause expectations for interest rate cuts to be pushed back. This is often a short-term disadvantage for risk assets.

2. USD tends to be stronger

Global capital favors USD when the US economy outperforms → adjustment pressure on crypto & gold in the short term.

3. But not bad news for crypto in the long term

Inflation is not surging, strong consumer demand → low recession risk. Crypto often experiences fluctuations first, then stabilizes when the market prices in the policy.

Brief conclusion

Short term: increased volatility, need for risk management

Medium term: monitor Fed & USD

Long term: a stable economy is a condition for capital to return to risk assets