Analysts criticize the financial implications of US president’s presidential tariffs, a development that some say that features the unique properties of Bitcoin’s economic economic in times of global uncertainty.
Trump’s 90-day pause in higher Reciprocal Tariffs.
Economist and have -set of The Bitcoin standardSaifean ammous, Trump’s decision said to reverse higher tariffs is likely a reaction to the increase in bond yields, suggesting that the administration’s hand was forced.
“Trump fought the bond market and won the bond market,” Ammous said on an April 23 x Post. “Gambling seems to work for the first day, and the huge crash in the stock market has been shown as a small price to pay for fiscal preservation.”
“But then the bonds began to crash, and it became clear how bad the tariffs were, and how wrong it was to expect the stock market to boost the bond market,” he added.
Related: Trump’s tariff increase exposes ‘deeper fractures’ to the global financial system
Treasury yields a spike after the tariff movement
Following Trump’s tariff announcement, Treasury’s 10-year yield rose from under 4% to 4.5%, CNBC data Shut upamongst a seller-off driven by inflation and shrinkage concerns.
“Raising the produce is the exact opposite of what the administration wants, and the return of the course to the tariffs half a day after they have realized it completely devastates for Trump’s negotiations position,” Ammous said.
Some analysts, including the global founder of macro investor Raoul Pal, suggested that tariff maneuvering can only be “posting” for US a Merchandise agreement with China.
“Everything talks about China buckling under Trump’s threat now is funny to retire, when Trump couldn’t stop his tariffs for 2 days,” said Ammous, adding that China has “showed no interest” to reach and strike a deal.
Delays in reaching a trade agreement may limit recovery of the same Equity and Cryptocurrency Marketwhich is the hinge of the outcomes of trade negotiations, according to Nansen analysts.
Meanwhile, Bitcoin (Btc) acts “less like a tech stock and more like a fence against economic uncertainty,” after Trump signed a “major reduction in tariffs on Chinese goods,” Nexo dispatch analyst Iliya Kalchev told cointelegraph.
Related: Crypto, stocks enter the ‘new phase of the trade war’ as US-China tensions rise
Trade wars reign in need for bitcoin standard
The situation has revived long-standing proposals to back the US dollar with Bitcoin.
Ammous Says The US should continue to buy BTC until the government holds enough to fully restore the dollar supply, eventually switched to a Bitcoin standard:
“Keep buying Bitcoin until the amount of Bitcoin held by the US government is enough to back the entire US dollar supply, then proceed to a Bitcoin standard where dollars can be redeemed for Bitcoin, and the government never spends more than earning.”
Historically, the dollar was back in gold and redeemed for a fixed amount of precious metal until 1933, when US president Franklin D. Roosevelt suspended the confession of gold in response to the Great Depression.
In 1971, President Richard Nixon prevented the dollar converting gold, aimed at protecting US reserves and stabilizing the economy, marked the beginning of the Fiat Currency system, which remains in today’s place.
The fixed Bitcoin supply, which is hard-coded in its tokenomics, makes it a popular digital competitor in gold.
Joe Burnett, Director of Market Research in Unchained, predicted that Bitcoin could rival or surpass the gold market capitalization of the next decade, which promoted the Bitcoin price exceeds $ 1.8 million by 2035.
https://www.youtube.com/watch?v=HB0z1TI8uys
Magazine: The bitcoin ath earlier than expected? XRP can drop 40%, and more: Hodler’s Digest, March 23–29
