The head of alpha strategies at the crypto asset management firm Bitwise believes President Trump’s tariffs will be a big bullish catalyst for Bitcoin (BTC).
Jeff Park says on the social media platform X that Trump is using tariffs to achieve two goals – weaken the US dollar and lower US Treasury yield.
According to Park, the Trump administration will do “whatever it takes” to lower Treasury yield so the government can borrow cheaper and reduce the burden passed on to taxpayers via interest payments.
Park says Trump is likely leveraging tariffs to force foreign nations to reduce their dollar reserves in an effort to weaken the dollar while compelling them to hold long-term US treasuries. If other countries agree, it will increase demand for the US 10-year Treasury, leading to higher bond prices and inversely lower yields.
“As a result, the US is charting a path to achieve the holy grail of fiat alchemy: lower dollar and lower yield.”
In such a scenario, Park predicts Bitcoin will see much higher prices.
“The asset to own therefore is Bitcoin. In a world of weaker dollar and weaker US rates, something broken pundits will tell you is impossible (because they can’t model statecraft), risk assets in the US will fly through the roof beyond your wildest imagination, for it is likely a giant tax cut will have to accompany the higher costs borne by the loss of comparative advantage.
The tariff costs, most likely through higher inflation, will be shared by both the US and trade partners, but the relative impact will be much heavier on foreigners.
These countries then will have to find a way to fend off their weak growth issues leading to stimulating the economy through monetary and fiscal policies that ultimately cause currency debasement.
The outraged citizens of these countries will experience a mini-financial crisis and look for alternatives. And unlike the 1970s when the world was largely offline, today we are not only online – we are on-chain. So while both sides of the trade imbalance equation will want Bitcoin for two different reasons, the end result is the same: higher, violently faster – for we are at war.”
At time of writing, Bitcoin is trading for $101,125.
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