Jeff Park, head of Alpha Asset Management, stated that a long tariff war can have a major positive impact on Bitcoin over time.
During the weekend, President Donald Trump imposed a tariff on Canada, Mexico and China.
The tariff war: Good for Bitcoin?
President Trump has duty 25 % tariffs on imports from Canada and Mexico. In addition, a 10 % tariff is performed on Chinese goods and a 10 % tariff on Canadian energy resources. According to BBCCanada and Mexico announced plans to impose a retaliatory tariff.
In a modern post on X, Park select the TRIFFIN dilemma and personal goals of President Trump to explain the long -term Bitcoin’s height.
“The definitions may be just a temporary tool, but the permanent conclusion is that bitcoin is not limited to a height – but faster,” Park books.
Park explained that the Trevin dilemma stems from the position of the US dollar as a backup currency in the world, giving it a “heavy privilege”. This privilege results in three structural traces: exaggerated dollars, continuous trade deficit, and lowering borrowing costs for the American government.
While the United States benefits from the cheapest borrowing, it seeks to correct the exaggerated dollar imbalances and the ongoing trade deficit. Therefore, Park indicates that the customs tariff uses a negotiating tactic to pay for a new international agreement. This is like this to 1985 Plaza Accord, which aims to weaken the dollar.
Moreover, Park argues that Trump has a personal share in this strategy. Looking at his severe real estate exposure, his primary goal is to reduce the return of the treasury for 10 years.
In the scenario of the weakest dollar and interest rates in the United States, risk assets in the United States can rise while foreign economies are struggling with high inflation and low currency value. In the face of financial instability, Park expects global investors to turn into alternative assets.
Park noted that “his origin is Bitcoin.”
He stressed that with the escalation of economic tensions, the rise of Bitcoin will accelerate.
President Trump’s tariff oversees the encryption market
Meanwhile, the threat of the trade war was sent to a decrease in the encryption market. Over the past few hours, Bitcoin has decreased briefly to at least 91,281 dollars, while ETHEREM fell to $ 2,143. This has led to the elimination of billions of market
According to Coinglass, the total references exceeded $ 2.23 billion over the past 24 hours.
“The worst liquidation event in history in one day,” a Chefir Deutschestra analyst to publish On x (previously Twitter).
Deutscher added that it was worse than the Luna and FTX collapse, which saw $ 1.6 billion in the liquidation.
Of the total references, $ 1.88 billion came from long positions and 349.81 million dollars from short jobs. In total, 726,788 merchants were filtered.
Disintegration
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