How Bitcoin Benefits in the Long Run
Jeff Park, head of the Alpha strategy of Bitwise Asset Management, said that over time, long -term tariff war may have a significant positive impact on bitcoin.
Last weekend, President Donald Trump imposed tariffs on Canada, Mexico and China.
Tariff War: Is it good for Bitcoin?
President Trump has Impose 25 % tariffs imported from Canada and Mexico. In addition, 10 % of Chinese goods tariffs and 10 % Canadian energy tax rates were implemented. according to British Broadcasting CorporationCanada and Mexico have also announced a plan to levy retaliatory tariffs.
In a recent article on X, Parker outlines Trifen’s dilemma and President Trump’s personal goals to explain The long -term rise in BitcoinEssence
“Tariffs may be just a temporary tool, but the permanent conclusion is that Bitcoin is not only high, but also faster,” Park WriteEssence
The park explained that Trifen’s dilemma originated from The US dollar as the status of the world’s reserve currency, It is a “high privilege”. This privilege has three structural impacts: high -value US dollars, continuous trade deficits, and US government reduced loan costs.
Although the United States benefits from cheap lending, it tries to correct Unexplicous high value And continuous trade deficit. Therefore, Parker proposes to use tariffs as a negotiation strategy to promote the new international agreement. He believes that this is similar to the square agreement in 1985, the purpose is to weaken the US dollar.
In addition, Parker believes that Trump has personal interests in this strategy. In view of his large contact with real estate, his main goal is to reduce the fiscal yield of 10 years.
In the case of weak US dollar and the decline in interest rates in the United States, American risk assets may surge, and foreign economies are struggling. inflation Declars to currency. Facing financial instability, Parker predicts the world Investors will turn to alternative assetsEssence
Parker pointed out: “Therefore, the asset owned is Bitcoin.”
He emphasized that with the upgrading of economic tensions, the rise in Bitcoin will accelerate.
President Trump’s tariff stimulus the crash of the encryption market
At the same time, the threat of the trade war Encryption market trendEssence In the past few hours, Bitcoin is short to minimize 91,281 US dollars, while Ethereum fell to US $ 2,143. This has caused billions of dollars to be wiped from the market
According to coinglass Total liquidation exceeds It has been $ 2.23 billion in the past 24 hours.
“The worst liquidation event in history in the day”, encrypted analyst Miles Deutscher Publish On X (previously Twitter).
Deutscher added, it is better than Luna FTX collapsed, with a liquidation of $ 1.6 billion.
In the total liquidation, US $ 1.88 billion came from long positions and US $ 3498.1 million, from short positions. A total of 726,788 traders were liquidated.
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