Jeff Park, Director of Alpha Strategies at Bitwise, which operates the fourth-largest US spot bitcoin ETF with assets under management totaling $2.039 billion, presented a bullish outlook on bitcoin via x. His analysis links historical economic decisions and current global financial conditions that he believes “are “incredibly powerful” for bitcoin.
Why Japan can benefit significantly from bitcoin
Park contrasts the economic crisis of 2024 with those of 2008 and 2020. He notes that while previous crises had clear culprits or were due to extraordinary circumstances, the bitcoin/bitcoin-price-crashes-49000-key-reasons/” target=”_blank” rel=”noopener nofollow”>Current situation It involves a complex international dynamic, influenced primarily by Japan’s economic policies. Park explains: “This current spiral of 2024 seems to be led by Japan, which, from the American perspective, requires a context of international cooperation in addition to its own domestic economic desires.”
Park delves into the historical context of the 1985 Plaza Accord, a pivotal yet often overlooked event that reshaped global economic leadership by devaluing the dollar to slow Japan’s economic rise. Park states, “Contrary to popular Western myth, Japan did not mysteriously enter the ‘lost decades’ of stagnation on its own and by chance.” He describes the agreement as a strategic move by the United States to maintain economic dominance, which subsequently led to Japan’s long-term economic stagnation and initiated the so-called Carry Trade.
Park criticizes the Fed’s current approach, stressing that it is not focused solely on domestic goals such as unemployment and price stability, but is also deeply intertwined with global economic conditions. She argues that “the United States cannot simply cut rates on its own without offending the rest of the world. This has real ripple effects for a country like Japan.”
The researcher also criticises modern financial architecture, which he believes has been characterised by decades of “artificial repression and theft”, particularly by Japan and the younger, asset-poor generations. He says: “This is the very core of modern financial architecture, with thirty years of accumulated artificial repression and theft, by the young, the asset-poor and, as I will argue here, by Japan.”
Amidst these criticisms, Park defends bitcoin as a key tool for financial inclusion. He points out that while discussions often focus on emerging markets such as Argentina and India, developed countries such as Japan can significantly benefit from bitcoin.
Park argues that bitcoin offers a unique opportunity for Japan to decouple its monetary policy from the influence of the US dollar, thereby addressing its structural leadership and demographic challenges. To conclude his analysis, Park shares his long-term bullish stance on bitcoin, predicting a significant revaluation in the wake of the current financial crisis.
“Not today, and probably not tomorrow either, but much sooner than I expected in my lifetime. This financial crisis is the mother crisis, the original sin, and it is global, generational, geopolitical. Even without a global implosion, the narrative will spread and people will realize why btc is valuable. Once the selling pressure ends, from the ashes will rise the most glorious phoenix the modern financial world has ever known, and we will rise, we will rise, we will rise.”
At the time of writing, btc was trading at $55,066.
Featured image created with DALL.E, chart from TradingView.com
