According to the report from the first quarter of the year, internal consumption in the United States has decreased, significantly impacting the 500 largest companies in the country (S&P 500), whose growth reduced from 3% to 1%. This drop in Gross Domestic Product (GDP) not only affects the U.S. economy but also drags Europe into a deeper recession. Meanwhile, China has managed to maintain economic growth, which contrasts with the situation in the West.

The key question is: will there be effective economic measures to stop this downward trend that is affecting all markets, including cryptocurrencies? Agricultural production, a sensitive sector of the U.S. economy, is also suffering. The crackdown on migrants, who represent 80% of the agricultural workforce, is beginning to have negative consequences. Moreover, the aggressive tariff policy against key countries for the U.S. economy, such as Mexico, Canada, and China, is generating an adverse effect. The ambiguity of former President Donald Trump on this issue has created uncertainty in the markets, exacerbating the situation.

In Europe, Germany, considered the economic engine of the continent, has entered recession. The 800 billion euros allocated to war instead of technological growth are generating concern. This military spending, instead of boosting innovation, could lead to an increase in poverty in Europe, where citizens could end up paying up to 8 thousand euros per person to cover these costs. The geopolitical situation with Russia and the decisions of leaders such as Emmanuel Macron, Ursula von der Leyen, and others are creating a climate of instability that could have devastating consequences, including the possibility of a nuclear conflict.

This scenario is causing a collapse in global markets. There is no need to open a debate on what constitutes a "crash" or a "correction" in the market, as these concepts are well documented in economic theory. What is important is how investors should handle this crisis. Patience and resilience will be key. Currencies and assets, although they are in the red, will not disappear. If they are solid projects, they will eventually recover their value and could even multiply.

It is crucial not to be carried away by emotions. Many cryptocurrencies are suffering significant losses, but this does not mean they are bad projects. Liquidity, capital, and other factors have been affected by phenomena such as "memecoins", divestment, and malicious manipulation. Projects like IO.NET, Radium, Worldcoin, or FET, although today they are worth cents, should not be automatically discarded. Even projects like LUMIA, which have lost a significant part of their capitalization, have solid fundamentals and real-world applications.

It is important to remember that even the cryptocurrencies with the highest capitalization, such as Ethereum, are experiencing declines. However, this does not make them bad long-term investments. The resilience of projects like DEXE demonstrates that, despite the turbulence, some assets can remain stable. Even in the midst of this storm, there are opportunities for those who know how to manage active trading, as in the case of AIXBT, a virtual financial assistant with which some have achieved significant gains.

Personally, I have used strategies such as moving funds to emerging projects like SONIC, which ranks 57th in capitalization, to multiply my holdings. This tactic, although risky, can be effective in times of volatility. I do not write for my own benefit, but to share strategies that may help others protect their capital. Patience is essential; the market will recover, and those who remain calm will see the fruits of their resilience.

Giorgio Sferraza

Bachelor's degree in Business Administration