Trade War to Boost Bitcoin Adoption, Analyst Says, Driving Long-Term Price Surge amid Global Economic Instability

US President Donald Trump’s trade policies are predicted to cause global macroeconomic turmoil, leading to increased adoption of Bitcoin (BTC) as a store of value asset, according to Bitwise analyst Jeff Park. Park argues that economic instability resulting from the trade war will prompt governments to implement inflationary fiscal and monetary policies, ultimately devaluing currencies and driving a flight to safer assets like Bitcoin. This surge in demand for BTC is expected to drive prices significantly higher in the long term. Despite the potential long-term benefits for Bitcoin, the short-term impact of the trade war is expected to cause financial market instability and wealth destruction, according to Park. Economist Ray Dalio also warns that tariffs could lead to stagflation on a global scale, affecting both producers and importing countries. The situation could potentially trigger a significant shift in the established monetary order due to debt levels and trade imbalances. Analysts fear a recession in the US economy by 2025 if the trade war continues, with concerns over the impact of protectionist trade policies. Additionally, some speculate that President Trump may be intentionally crashing capital markets to secure interest rate cuts and reduce national debt servicing costs. While this strategy may cause short-term pain, it could lead to higher asset prices in the long term. As the global financial landscape faces uncertainty, Bitcoin is emerging as a potential safe haven asset amidst the trade war turmoil.

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