The markets are spooked.

With recessionary fears - Bitcoin and other risk-on assets have got caught-up between Trump's attempt at reeling-in both - the budget as well as the trade deficits.

However, considering:

1. D.O.G.E cuts restricted to discretionary spending

2. A $36T federal debt with +$1T of interest payments

3. Trump cutting taxes and shrinking tax revenues

4. Rising trade & tariff wars and protectionist policies

And, in the absence of :

1. Significant reduction in mandatory spending across - Social Security, Medicare & Defence, and/or

2. U.S. federal debt (worth $36T) restructuring

There is a higher probability of meaningful contraction in trade deficits vs. similar success with bringing down U.S. budget deficits.

The combination of - a contracting trade deficit with an as-is or expanding budget deficit will lead to:

1. Intermediate-term strong, but long-term weak DXY.

2. And the likely impact of #Bitcoin and risk-on assets will be positive

The recessionary fears will fade-away as soon as the market figures out that Trump's intended transition of the U.S. economy is much harder to achieve that it initially expected.

Hang in there and Hodl strong.