U.S. Economy Faces 1.2% GDP Growth, 3% Inflation by 2025, Warns Apollo

Apollo's Chief Economist, Slock, has issued a stark warning about the U.S. economy, stating that the country is at a critical juncture where stagflation could become a reality. This economic condition is characterized by a slowdown in economic growth coupled with rising inflation, a scenario that has been exacerbated by the comprehensive tariff increases implemented by the Trump administration. According to Apollo's estimates, by 2025, the GDP growth rate could plummet to 1.2%, while inflation is projected to surge to 3%. Additionally, the unemployment rate is anticipated to exceed 5%, potentially pushing the economy into a recession as early as this summer.

The tariffs imposed by the U.S. are having a ripple effect throughout the supply chain, suppressing both corporate and consumer demand. This economic environment limits the Federal Reserve's ability to implement effective policy measures, leading to increased market volatility and a heightened demand for hedging strategies. The looming tariff deferral deadline adds another layer of uncertainty, as negotiations with major trading partners, including the EU, Japan, South Korea, India, and Vietnam, remain ongoing. These negotiations are crucial, as any delays or setbacks could further exacerbate the economic challenges faced by the U.S.

In response to these economic headwinds, Bitunix analysts have advised investors to adopt a more defensive stance in the short term. The cryptocurrency market, in particular, may face significant pressure due to profit-taking and liquidity withdrawal. Key support levels for Bitcoin (BTC) are identified at 103,000 USD, with resistance at 110,500 USD. Analysts recommend a conservative trading approach, emphasizing the importance of setting stop-loss orders and avoiding high-volatility periods. Investors are urged to closely monitor the progress of trade negotiations, as any developments could have a substantial impact on market dynamics.