US trading policies Donald Trump will create global macroeconomic chaos and short-term financial crises that will eventually lead to greater adoption of Bitcoin (Btc) as a store of value of the owner, according to Bitwise analyst Jeff Park.
The economic instability of the trade war will cause governments to adopt fiscal and financial policies, which will further reduce money and lead to a global flight to safety in alternative value stores, such as Bitcoin, Park’s dispute.
The increased demand for BTC is Higher drive prices In the long run, the analyst ended. To an x Post In Feb. 2, Park predicted the immediate impact of a trade war:
“Tariff costs, likely through higher inflation, will be shared by both US and trading partners, but the relative -child effect will be heavier among foreigners. These countries will have to find a way to get rid of their weak growth issues.”
Despite increasing demand for Bitcoin as a store of value against the rapid denial of fiat currencies driving BTC prices higher than lasting, the global financial market will feel short -term illness and destruction of the trade war, according to Park.
Bitcoin struck with a shock shock due to COVID-19 in March 2020 before ralling all the time highs during the 2020-2021 Bull Market. Source: Tradingview
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Global markets feel short -term shock
Tariffs are “stagflationary for the world as a whole,” economist and hedge fund manager Ray Dalio wrote on an April 2 x x x Post. Tariffs tend to be more deflationary for provided commodity producers and more inflationary for the country’s import, Dalio added.
He concluded that the level of debt and trade imbalance would eventually lead to a global financial transfer that changes the established finance.
The US stock market has experienced a dramatic sale-off at the end of trading tariffs from Trump’s admin. Source: Tradingview
“If this trade tariffs led to a massive trade war, it would be very ugly for the whole world,” Bureau founder of coin and market analyst Nic Puckrin told Cointelegraph in a interview.
Analyst said the US economy has a 40% chance of a backward In 2025 amid fear of a long trade war and the macroeconomic uncertainty brought by protection trade policies.
No pain, no benefit: short -term shock to drive asset prices higher long -term?
Asset manager Anthony Pompliano recently thought the US president was deliberately crashing capital markets To force cuts in interest rate and lower US national debt service costs.
The interest rate in the 10-year US Treasury bond has dropped since the beginning of Trump’s second term. Source: Tradingview
The interest rate in the 10-year Bond of the US treasury declined from approximately 4.66% in January to the current rate of 4.00%.
Pompliano also concluded that while current US administration policies will create short -term illness, the impact of lower interest rates will encourage borrowing and drive risk prices higher in the long run.
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