Trump Will Crash Markets On This Date (Day 2 Trade Challenge)
🎯 Summary
Podcast Episode Summary: Trump Will Crash Markets On This Date (Day 2 Trade Challenge)
This 6-minute podcast segment focuses heavily on the host’s real-time cryptocurrency trading activities as part of a “$1,000 to $10,000 (and eventually a Porsche)” challenge, interspersed with commentary on macroeconomic events, particularly the potential impact of former President Trump’s trade policies.
1. Focus Area: Cryptocurrency Trading (specifically ETH futures/perpetuals), Technical Analysis (TA), and Macroeconomic Policy (US Tariffs and Federal Reserve interest rates).
2. Key Technical Insights:
- Liquidation Sweeps and Divergence: The host successfully executed an ETH long trade based on identifying liquidations (using FOMO.IO) and observing a bullish divergence (price falling while indicators rise), leading to a predicted “snap” upward.
- Entry/Exit Strategy: Trades are managed using strict stop-loss adjustments to lock in profits (e.g., adjusting stop loss to 4.16% profit after an initial gain). Entries are often planned around anticipated liquidity sweeps below key support/resistance levels.
- Market Structure: The host emphasizes waiting for a “liquidation sweep” or a “change of character” before entering a new trade, indicating a preference for trading confirmed market structure breaks rather than trading within consolidation zones (“stuck between two major areas”).
3. Market/Investment Angle:
- Trump Tariffs and Inflation: The primary macroeconomic concern is the July 8th deadline for the 90-day extension of Trump’s tariffs. The market anticipates that the continuation or extension of these tariffs could reignite inflation, causing the Federal Reserve (Jerome Powell) to delay interest rate cuts.
- Altcoin Season Caution: Citing external analysis (Benjamin Cowan), the host notes a bearish sentiment where “altcoins could drop another 30%” despite the SPX hitting all-time highs, suggesting a rotation or consolidation phase.
- Trading Challenge Metrics: The host tracks daily ROI (achieving 4% ROI on one trade, totaling 20% completion of the $1k to $10k goal) while acknowledging the necessity of both wins and losses in compounding strategies.
4. Notable Companies/People:
- FOMO.IO: Mentioned as the tool used to identify liquidations for trade entries.
- JP Morgan: Launching a USD-backed deposit token on the Base network, which the host suggests is bullish for AeroDrome.
- Donald Trump: Central to the macroeconomic discussion regarding upcoming tariff decisions.
- Jerome Powell: Mentioned as waiting on tariff outcomes before making decisions on interest rate reductions.
- Veteran Crypto: A guest/Discord member featured for demonstrating a successful DeFi yield farming strategy (turning $455 of Plume into ~$4,300 via the Plume portal on Uniswap).
5. Regulatory/Policy Discussion:
- Deploying American Blockchains Act 2025: The host expresses extreme excitement over the US House passing this act, which mandates the US government to deploy and promote blockchain and DLT technology. This is framed as a major, positive regulatory shift.
- Trump’s Stance: Trump recently called for Jerome Powell to resign, adding political volatility to the monetary policy outlook.
6. Future Implications:
- If tariff extensions are delayed (due to ongoing good-faith negotiations), the market is expected to see an “upside moving into the latter half of July.”
- The success of the trading challenge hinges on consistent compounding, even if daily targets (2% per day) are missed, emphasizing the power of long-term compounding over short-term perfection.
7. Target Audience: Experienced crypto traders familiar with technical analysis (liquidations, divergences, MACD/RSI), DeFi yield strategies, and those interested in the intersection of US political events (tariffs) and crypto market movements.
🏢 Companies Mentioned
đź’¬ Key Insights
"The US House has passed the Deploying American Blockchains Act 2025, which will specifically force the United States to not only deploy and use blockchain, but promote other distributed ledger technology."
"It looks like JP Morgan is launching a USD-backed deposit token on Base, which might be incredibly bullish for AeroDrome."
"Jerome Powell has been testifying, saying that he is waiting on reducing interest rates until they know what happens with tariffs, saying that they're going to simply wait and see because economists are projecting that this could bring back inflation."
"I'm in the camp, but why not just rip the band-aid off if the can, and see off at Quinn Cares go to the range lows by September? In summary, altcoins could drop another 30%."
"Veteran Crypto on with me talking about Defiant how to earn a yield where he started with a set amount of capital in certain cryptos and made a ton of profit. For example, you can see Plume down here where he started with $455. He then took that $455, put it into the Plume portal here on Uniswap. Then in his cabin... he has now turned that $455 of Plume into roughly $4,300."
"Do you guys actually think the government's going to use XRP?"