The recent unveiling of President Donald Trump’s controversial tariff plans, dubbed “Liberation Day,” has sent shockwaves through financial and prediction markets. In a surprising turn of events, a new poll on the decentralized prediction market Polymarket shows that 60% of bettors now predict a recession in 2025, marking a significant increase from just 24 hours prior.
This sudden shift in sentiment comes on the heels of Trump’s announcement of steep tariffs on goods from various countries, which he framed as a move towards economic justice for American workers. The President’s rhetoric, accusing other nations of exploiting the US economically, has ignited chaos in the global marketplace.
The Dow Jones Industrial Average has tumbled nearly 3,700 points in just two days, reflecting investor panic over the potential impact of Trump’s tariff policies. However, amidst the market turmoil, Bitcoin has bucked the trend by climbing to over $84,000. This unexpected surge in the value of the digital asset has led some to speculate that investors may be seeking refuge in digital hedges amid the uncertainty in traditional markets.
Critics of Trump’s tariff policies warn that they could have far-reaching negative consequences for global trade and consumers. Despite these concerns, the President remains steadfast in his belief that his plan will strengthen American independence and manufacturing.
As the tariffs are set to take effect soon, the long-term implications for the digital asset industry remain uncertain. It remains to be seen how the potential recession and market turbulence will impact the crypto market moving forward.
The surge in recession predictions on Polymarket and the market volatility following Trump’s tariff announcement underscore the profound impact that geopolitical events can have on financial markets. Investors and analysts alike will be closely monitoring developments in the coming days to gauge the full extent of the economic fallout from these policy decisions.