Jeff Park, chief of alpha strategies at Bitwise Asset Management, said that a prolonged tariff war could have a substantial positive impact on bitcoin over time.
During the weekend, President Donald Trump imposed prices in Canada, Mexico and China.
WAR rate: Good for Bitcoin?
President Trump imposed a 25% rate on imports from Canada and Mexico. In addition, a 10% rate on Chinese products and a 10% rate on Canadian energy resources are implemented. According to the BBC, Canada and Mexico have also announced its intention to impose reprisal rates.
In a recent article on X, Park described the Triffin dilemma and the personal objectives of President Trump to explain the long -term climb of bitcoin.
“The prices can be just a temporary tool, but the permanent conclusion is that Bitcoin goes not only higher, but faster,” said Park.
Park explained that the Triffin dilemma stems from the status of the US dollar as a global reserve currency, granting it an “exorbitant privilege”. This privilege results in three structural effects: an overvalued dollar, a persistent trade deficit and a drop in loan costs for the United States government.
Although the United States benefits from cheaper loans, it seeks to correct the imbalances of an overvalued dollar and continuous trade deficits. Therefore, Park suggests that prices are used as a negotiation tactic to put pressure for a new international agreement. This, he argues, is similar to the 1985 place agreement, aimed at weakening the dollar.
In addition, Park argues that Trump has personal participation in this strategy. Given its strong exposure to real estate, its main objective is to lower the performance of the treasury to 10 years.
In a lower dollar scenario and the drop in American interest rates, risk assets in the United States could increase while foreign savings have trouble increasing inflation and devaluation of mounts. Faced with financial instability, Park predicts that global investors will turn to alternative assets.
“The assets to have is therefore bitcoin,” noted Park.
He stressed that, as economic tensions degenerate, the ascent of Bitcoin will accelerate.
President Trump’s prices trigger the collapse of the cryptography market
Meanwhile, the threat of a trade war sent the cryptography market. In the past hours, Bitcoin fell briefly at $ 91,281, while Ethereum fell as low as $ 2,143. This has brought billions of market safety
According to CorciLass, total liquidations exceeded $ 2.23 billion in the past 24 hours.
“The worst event of liquidation of history in a single day,” published a Crypto Miles Deutscher analyst on X (formerly Twitter).
Deutscher added that it was worse than the collapse of Luna and FTX, which saw $ 1.6 billion in liquidations.
Of the total liquidations, $ 1.88 billion came from long positions and $ 349.81 million in short positions. A total of 726,788 merchants were liquidated.
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