Bitwise Predicts ‘Violent’ Surge Amid Trump’s Tariffs
On the weekend, the price of Bitcoin fell more than 13.5 %, and the two dollars fell $ 91,201. After the US President Donald Trump announced a new trade tariff, it was sold. The government levies 25 % of tariffs on the imports of most of Canada and Mexico, 10 % tax on Chinese goods, and 10 % tariffs on Canadian energy.
Although market observer usually regards this positive move as a negative impact on risk assets, a prominent voice of Bitwise Invest sees a very different situation. It is predicted that these tariffs may exacerbate “violence” in Bitcoin for a long time. assembly.
Why may tariffs enhance Bitcoin
Jeff Park debate These tariffs cannot be simply understood as a response to trade imbalances, but they should be viewed in a broader background of the so -called Trifen’s dilemma. In Parker’s words, “the United States wants to maintain its ability to borrow cheap borrowing, but eliminates its structural overestimation and continuous trade deficit-levy tariffs.”
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He suggested that by the use of tariffs as bargaining chips, the White House is seeking to establish a new multilateral agreement (Akin), that is, “Plaza Agreement 2.0” to weaken the US dollar. This may force foreign governments to reduce its US dollar reserves or hold longer treasury, thereby maintaining a lower return on the condition that the income curve control is not formulated.
Parker also associated this strategy with the President’s personal incentives. He believes that Trump’s ” # 1 goal” is expelled 10 -year fiscal revenueSome reasons are that cheap long -term financing will benefit the real estate market. According to Parker, such a low yield has weakened the US dollar stupidly. In his opinion, these two conditions have created an ideal environment for Bitcoin and boomed Bitcoin.
“Therefore, the assets owned are Bitcoin. In a weaker and weaker world of US rates, damaged experts will tell you that it is impossible (because they cannot model). Imagination, because this is likely to be a huge tax reduction that will have to be accompanied by a higher cost with the advantages of losses. “Parker wrote.
His argument is that the essence of the “online and boundaries” of today’s economy will make citizens who have frustrated global frustrated citizens looking at the alternative store (that is, Bitcoin). He believes that any long -term tariff war will find that the BTC provides a shelter for refuge, which has led to a higher price trajectory he described.
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“Therefore, although both parties to the equation of trade need Bitcoin, the end result is the same: higher, faster and faster, because we are in war. TLDR: You have not mastered the continuous tariff war at all, and you will not have continuous tariff war war. How amazing is the currency long“Park claimed.
Tariffs as risk asset resistance
Not all analysts share the optimism of the park. Alexkrüger, Argentine economist and businessman, Argentina, Argentina, disagree With this concept, this scope prefers Bitcoin. He warned: “Bitcoin is mainly risk assets.”
He added: Tariffs are very negative to risk assets. The economy will be hit. The announced tariffs are much worse than the market expectations, because the gradual tariffs or delayed implementation are considered alternative. Therefore, Standard Plag Futures will be opened in depth in the red and red tonight. “
From Krüger’s view, Bitcoin is still a high β asset and is usually related to the stock market. When a major macro impact (such as the sudden increase in tariffs), investors usually rotate into safe haven, rather than risks such as stocks or cryptocurrencies. He pointed out that the sales of cryptocurrencies on weekends may be “unexpectedly harsh” tariffs through market reactions.
Krüger pointed out that “the hope of encryption is that it has greatly reduced its expectations,” this implies that if the initial impact is completely absorbed, digital assets may find the bottom of the local area. However, he emphasized the continuous uncertainty in the future, including the possibility of revenge on the target country. Fast resolution of trade disputes may cause a rebound, and upgrading may deepen market intensification.
Crug also warned The Fed may become an eagle If the tariff STOKE inflation is inflated, it rarely shows high -growth or risk -easy assets. Nevertheless, he has not excluded the fresh climax of the stock later this year:
“I still think that the top of the cycle is not there, and I hope that the equity index is printed in ATHS later this year. Hat. This is a businessman. “
At the time of release, the transaction price of BTC was $ 94,000.
Use the characteristic images created by Dall.e, the chart of tradingView.com
