NEWSLETTER
The business policies of the US President Donald Trump will create worldwide macroeconomic agitation and short -term financial crises that will finally lead to a greater adoption of bitcoin (btc) as a value store, according to the analyst Bitwise Jeff Park.
The economic instability of the commercial war will cause governments to adopt fiscal and monetary inflationary policies, which will further degrade coins and lead to a world flight to safety in alternative value stores, such as bitcoin, Park argued.
This greater demand for btc will boost much higher prices in the long term, concluded the analyst. In an x <a target="_blank" data-ct-non-breakable="null" href="https://x.com/dgt10011/status/1886125163642552606″ rel=”nofollow noopener” target=”_blank” text=”null” title=”https://x.com/dgt10011/status/1886125163642552606″>mail On February 2, Park predicted the immediate impact of a commercial war:
“Tariff costs, most likely through greater inflation, will be shared by the US and commercial partners, but the relative impact will be much heavier for foreigners. These countries will have to find a way to defend themselves against their weak growth problems.”
Despite bitcoin's greatest demand as a value reserve against fiduciary rapid depreciation coins that conducts the highest long -term btc prices, global financial markets would feel the destruction of pain and short -term wealth of the commercial war, according to Park.
bitcoin hit a short-term price shock due to COVID-19 in March 2020 before meeting with historical maximums during the 2020-2021 upward market. Fountain: Commercial view
Related: Trump's Tariffs 'Liberation Day' create chaos in markets, recession concerns
Global markets feel short -term shock
The tariffs are “Estafflacaciones for the world as a whole,” wrote the economist and manager of Coverage Funds Ray Dalio in an x of April 2 <a target="_blank" data-ct-non-breakable="null" href="https://x.com/RayDalio/status/1907489922359132627″ rel=”null” target=”null” text=”null” title=”https://x.com/RayDalio/status/1907489922359132627″>mail. Tariffs tend to be more deflation for producers of collected and more inflationary goods for the importing country, Dalio added.
He concluded that the level of debt and commercial imbalances will ultimately lead to a global financial change that changes the established monetary order.
The US stock market experienced a dramatic liquidation following broad commercial tariffs of the Trump administrator. Fountain: Commercial view
“If these commercial tariffs lead to a mass commercial war, it will be very ugly for everyone,” said Coin Bureau market founder and analyst Nic Puckrin, Cointelegraph in an interview.
The analyst said that the US economy has a 40% chance of a recession in 2025 amid fears of a long commercial war and macroeconomic uncertainty caused by protectionist commercial policies.
Without pain, without gain: Shock in the short term to boost the prices of the highest long -term assets?
The asset manager, Anthony Pompliano, recently speculated that the president of the United States is deliberately starring capital markets to force interest rate cuts and reduce the costs of addressing the national debt of the United States.
The interest rate in the 10 -year United States Treasury Bonus has decreased since the beginning of Trump's second term. Fountain: Commercial view
The interest rate of the United States Treasury bonds to 10 years decreased from approximately 4.66% in January to the current rate of 4.00%.
Pompliano also concluded that, although the current US administration policies will create short -term pain, the effect of lower interest rates will encourage loans and boost the prices of the highest long -term risk assets.
This article does not contain advice or investment recommendations. Each investment and trade movement implies risk, and readers must carry out their own investigation by making a decision.
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