Analysts are criticizing the financial implications of US President Donald Trump\u2019s import tariffs, a development that some say highlights Bitcoin\u2019s unique economic properties during times of global uncertainty. Trump\u2019s 90-day pause on higher reciprocal tariffs, reverting them to a 10% baseline for most countries except China, has exposed vulnerabilities in the US bond market, according to critics. Economist and author of The Bitcoin Standard, Saifedean Ammous, said Trump\u2019s decision to reverse the higher tariffs was likely a reaction to rising bond yields, suggesting the administration\u2019s hand was forced. \u201cTrump fought the bond market and the bond market won,\u201d Ammous said in an April 23 X post. \u201cThe gambit seemed to work for the first day, and the huge crash in the stock market was presented as a small price to pay for fiscal sustainability.\u201d \u201cBut then the bonds began to crash, and it became clear how disastrous the tariffs were, and how wrong it was to expect that deliberately crashing the stock market would boost the bond market,\u201d he added. Following Trump\u2019s tariff announcement, the 10-year Treasury yield surged from under 4% to 4.5%, CNBC data shows, amid a sell-off driven by inflation and recession concerns. \u201cThe rise in yields was the exact opposite of what the administration wanted, and reversing course on the tariffs half a day after they go into effect was absolutely devastating for Trump\u2019s negotiating position,\u201d Ammous said. Some analysts, including Global Macro Investor founder Raoul Pal, have suggested the tariff maneuvering may only be \u201cposturing\u201d for the US to reach a trade agreement with China. Delays in reaching a trade agreement may limit the recovery of both equity and cryptocurrency markets, which hinge on the outcomes of the trade negotiations, according to Nansen analysts. Meanwhile, Bitcoin (BTC) is acting \u201cless like a tech stock and more like a hedge against economic uncertainty,\u201d after Trump signaled a \u201csubstantial reduction in tariffs on Chinese goods,\u201d Nexo dispatch analyst Iliya Kalchev told Cointelegraph. The situation has revived long-standing proposals to back the US dollar with Bitcoin. Ammous said the US should keep buying BTC until the government holds enough to fully back the dollar supply, ultimately switching to a Bitcoin standard. Historically, the dollar was backed by gold and redeemable for a fixed amount of the precious metal until 1933, when US President Franklin D. Roosevelt suspended gold convertibility in response to the Great Depression. In 1971, President Richard Nixon halted the dollar\u2019s convertibility into gold, aiming to protect the US gold reserves and to stabilize the economy, marking the beginning of the fiat currency system, which remains in place today. Bitcoin\u2019s fixed supply, which is hard-coded in its tokenomics, makes it a popular digital competitor to gold. Joe Burnett, director of market research at Unchained, predicted that Bitcoin may rival or surpass gold\u2019s market capitalization in the next decade, projecting the Bitcoin price will surpass $1.8 million by 2035.<\/p>\n","protected":false},"excerpt":{"rendered":"
Analysts are criticizing the financial implications of US President Donald Trump\u2019s import tariffs, a development that some say highlights Bitcoin\u2019s unique economic properties during times of global uncertainty. Trump\u2019s 90-day pause on higher reciprocal tariffs, reverting them to a 10% baseline for most countries except China, has exposed vulnerabilities in the US bond market, according […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[25],"tags":[],"aioseo_notices":[],"featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":""},"author_info":{"display_name":"","author_link":"https:\/\/vanillanews.com\/index.php\/author\/"},"category_info":"JUST IN<\/a>","tag_info":"JUST IN","comment_count":"0","_links":{"self":[{"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/posts\/109167"}],"collection":[{"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/comments?post=109167"}],"version-history":[{"count":0,"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/posts\/109167\/revisions"}],"wp:attachment":[{"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/media?parent=109167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/categories?post=109167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vanillanews.com\/index.php\/wp-json\/wp\/v2\/tags?post=109167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}