{"id":839956,"date":"2025-04-08T18:13:41","date_gmt":"2025-04-08T23:13:41","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/08\/analysts-real-reason-why-market-crashed-and-why-it-doesnt-matter\/"},"modified":"2025-04-08T18:13:41","modified_gmt":"2025-04-08T23:13:41","slug":"analysts-real-reason-why-market-crashed-and-why-it-doesnt-matter","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/08\/analysts-real-reason-why-market-crashed-and-why-it-doesnt-matter\/","title":{"rendered":"Analysts: Real Reason Why Market Crashed and Why It Doesn\u2019t Matter"},"content":{"rendered":"<p>Bitcoins <\/p>\n<div>\n<div id=\"blockquote-block_a99cd35981a843608882c014a5035b11\">\n<ul>\n<li>Pompliano claims Trump is deliberately crashing markets through tariffs to force interest rate cuts, pointing to falling Treasury yields as evidence.<\/li>\n<li>Bitwise\u2019s Hougan calls market disappointment over the Strategic Bitcoin Reserve \u201cabsurd\u201d, noting that simply not selling existing holdings is significant.<\/li>\n<li>The Executive Order\u2019s language suggests the government will acquire more Bitcoin, indicating firm intent rather than possibility.<\/li>\n<li>Hougan argues Bitcoin will either become a major global asset worth US$10-50 trillion or remain a niche investment, with the US reserve policy influencing other nations\u2019 decisions.<\/li>\n<\/ul>\n<\/div>\n<p>After the recent crypto crash, it seems <a href=\"https:\/\/cryptonews.com.au\/category\/bitcoin\/\">Bitcoin<\/a> and Co seem to be stabilising for now. The largest crypto is up almost 5% over the past 24 hours, currently trading for US$83,264 (AU$132,256), which is still down 24% from the all-time high set in January.<\/p>\n<p><strong>Related:<\/strong><a href=\"https:\/\/cryptonews.com.au\/news\/us-crypto-legal-update-stablecoins-trump-debanking-order-and-irs-crypto-rule-127737\/\"><strong> <\/strong><strong>US Crypto Legal Update: Stablecoins, Trump Debanking Order and IRS Crypto Rule<\/strong><\/a><\/p>\n<p>There is consensus that <a href=\"https:\/\/cryptonews.com.au\/news\/trump-induced-economic-death-spiral-sends-bitcoin-below-80k-as-analysts-weigh-in-127727\/\">Trump\u2019s tariffs<\/a> and the ensuing trade wars are largely behind the crash, although not all analysts agree.<\/p>\n<h2 id=\"h-heading-in-right-direction-claims-pomp\">Heading in Right Direction, Claims Pomp<\/h2>\n<p>Anthony \u2018Pomp\u2019 Pompliano, founder and CEO of Professional Capital Management, said Trump is crashing the market on purpose.<\/p>\n<figure>\n<div>\n<blockquote data-width=\"500\" data-dnt=\"true\">\n<div lang=\"en\" dir=\"ltr\">\n<p>The President and his team are intentionally crashing the market.<\/p>\n<p>Is this a master plan or are we watching uncontrolled destruction?! <a href=\"https:\/\/t.co\/Tbc0M9Rjxu\">pic.twitter.com\/Tbc0M9Rjxu<\/a><\/p>\n<\/div>\n<p>\u2014 Anthony Pompliano ???? (@APompliano) <a href=\"https:\/\/twitter.com\/APompliano\/status\/1899154245783359849?ref_src=twsrc%5Etfw\">March 10, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>Pompliano said that President Trump and Treasury Secretary Scott Bessent are deliberately \u201ccrashing asset prices\u201d through policies like these tariffs to force rate cuts.<\/p>\n<p>As evidence for this strategy\u2019s effectiveness, Pomp points to the decline in the 10-year Treasury yield from nearly 4.8% in January to 4.21% currently. He suggests the administration\u2019s approach is \u201cheading in the right direction\u201d toward creating more favourable bond market conditions.<\/p>\n<h2 id=\"h-bitcoin-reserve-reaction-absurd-says-analyst\">Bitcoin Reserve Reaction Absurd, Says Analyst<\/h2>\n<p>Whether Pomp\u2019s analysis is correct or not, the market turmoil may have other reasons too. And it\u2019s a reason where Trump also has a finger in the pie: <a href=\"https:\/\/cryptonews.com.au\/news\/strategic-bitcoin-reserves-facing-republican-opposition-among-the-states-126489\/\">the Strategic Bitcoin Reserve<\/a>.<\/p>\n<p>According to a <em>Barron<\/em><a href=\"https:\/\/www.barrons.com\/articles\/bitcoin-price-falls-trump-strategic-reserve-1e09e019\"> article<\/a>, investors are disappointed that the US won\u2019t be buying Bitcoin immediately \u2013 though it will hold on to any BTC it has \u2013 and rather look at further acquisitions down the track, provided it can be done in a \u201cbudget neutral\u201d way.<em> <\/em>\u00a0<\/p>\n<p>Matt Hougan, Chief Investment Officer (CIO) at Bitwise, <a href=\"https:\/\/experts.bitwiseinvestments.com\/cio-memos\/the-only-question-that-matters-in-bitcoin\">called<\/a> the market\u2019s reaction to the announcement absurd.<\/p>\n<p>Hougan argues that the fact alone that the government is not selling is a \u201cmajor win\u201d \u2013 diamond hand style, one could say.<\/p>\n<h2 id=\"h-us-puts-other-countries-on-notice\">US Puts Other Countries on Notice<\/h2>\n<p>He also believes the US <strong>will<\/strong> eventually buy more, pointing at language in the EO, which is specific about this.<\/p>\n<p><strong>Related:<\/strong><a href=\"https:\/\/cryptonews.com.au\/news\/crypto-etf-update-ethereum-staking-rewards-coming-amid-xrp-filing-by-franklin-templeton-127741\/\"><strong> <\/strong><strong>Crypto ETF Update: Ethereum Staking Rewards Coming amid XRP Filing by Franklin Templeton<\/strong><\/a><\/p>\n<p>The most important thing according to the CIO is that speculations around Trump\u2019s order are only \u201cshort-term noise\u201d. If Bitcoin becomes a global reserve asset, other countries will follow.<\/p>\n<div id=\"blockquote-block_2732684608f81d8150f32d2d586ba1f2\">\n<p>The strategic reserve is a huge step forward. It\u2019s the U.S. government putting the world on notice, saying \u201cbitcoin matters.\u201d That matters a lot to other countries [\u2026] who may be considering building their own strategic reserve. Do you think they\u2019d prefer to get in before or after the U.S. starts making big moves?<\/p>\n<p><img decoding=\"async\" data-eio=\"l\" data-old-src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" src=\"https:\/\/cdn.cryptonews.com.au\/2024\/05\/24150113\/Matt-Hougan-1.jpg\">        Matt Hougan    <\/p>\n<\/div>\n<p>If all this doesn\u2019t happen and interest in Bitcoin fizzles out, it will \u201cbe a footnote in history, bouncing around below $150,000, supported only by a small cohort of libertarians, cypherpunks, and speculators\u201d.<\/p>\n<p>Though that\u2019s unlikely, according to Hougan.<\/p>\n<div id=\"blockquote-block_a4519f9f8617dbac19382a8a1fb705f5\">\n<p>There is no in between. Bitcoin either matters globally or it doesn\u2019t. [\u2026] This short-term weakness is a gift.<\/p>\n<p><img decoding=\"async\" data-eio=\"l\" data-old-src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" src=\"https:\/\/cdn.cryptonews.com.au\/2024\/05\/24150113\/Matt-Hougan-1.jpg\">        Matt Hougan    <\/p>\n<\/div><\/div>\n<p> Aaron Feuerstein <a href=\"https:\/\/cryptonews.com.au\/news\/analysts-real-reason-why-market-crashed-and-why-it-doesnt-matter-127746\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pompliano claims Trump is deliberately crashing markets through tariffs to force interest rate cuts, pointing to falling Treasury yields as evidence. Bitwise\u2019s Hougan calls market disappointment over the Strategic Bitcoin Reserve \u201cabsurd\u201d, noting that simply not selling existing holdings is significant. The Executive Order\u2019s language suggests the government will acquire more Bitcoin, indicating firm intent<\/p>\n","protected":false},"author":1,"featured_media":839957,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27770,461],"tags":[11476],"class_list":{"0":"post-839956","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-analysts","8":"category-reason","9":"tag-bitcoins"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/839956","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=839956"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/839956\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/839957"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=839956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=839956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=839956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}