Scaramucci Warns U.S. Tariffs Could Trigger Recession, Boost Bitcoin

Anthony Scaramucci, a former White House Communications Director under Donald Trump, has expressed concerns about the potential economic fallout from U.S. tariffs on major trading partners. According to Scaramucci, these tariffs could lead to a recession, which in turn could have significant implications for Bitcoin and Europe.

Scaramucci, who is also the founder of SkyBridge Capital, shared his insights in an interview with an investment platform. He highlighted that the recent drop in Bitcoin's correlation with traditional markets, such as the NASDAQ, suggests that it is increasingly being seen as a safe haven asset similar to gold. This shift could be driven by the inflows into Bitcoin ETFs and other investment vehicles, which are attracting significant capital.

When asked about the potential impact of U.S. tariffs on different economies, Scaramucci emphasized that a recession in the U.S. would have global repercussions. He noted that while the U.S. market has been volatile, European markets like the FTSE and DAX have shown relative strength. This could be due to international capital allocators seeking more stable and predictable markets in the face of U.S. trade policies.

Scaramucci also pointed out that European nations, particularly those with strong industrial sectors like Germany, could benefit from increased defense spending and profitability. However, he cautioned that the overall impact of tariffs would be negative for all economies involved, as trade tensions and economic instability would likely escalate.

In summary, Scaramucci's warning highlights the potential for U.S. tariffs to trigger a recession, which could boost Bitcoin as a safe haven asset and benefit Europe as companies seek alternative markets. The complex interplay between trade policy, economic stability, and financial markets underscores the need for careful consideration and strategic planning in trade negotiations.