U.S. President Donald Trump’s aggressive trade policies could trigger global economic turmoil, causing short-term financial crises that will ultimately drive greater adoption of Bitcoin (BTC) as a store of value, according to Bitwise analyst Jeff Park.
Park argues that the macroeconomic instability resulting from the trade war will prompt governments to adopt inflationary fiscal and monetary policies, further debasing fiat currencies. This will lead to a worldwide flight to safer assets, with Bitcoin positioned as a key alternative store of value.
Bitcoin’s Long-Term Price Surge
As the demand for Bitcoin grows in response to deteriorating fiat currencies, Park predicts a significant long-term increase in Bitcoin’s value.
In a post on X (formerly Twitter) on February 2, Park noted that the initial impact of Trump’s trade policies would likely result in higher inflation, which would disproportionately affect countries outside the U.S. The tariffs, he explained, would create major economic difficulties, especially for foreign economies.
Short-Term Financial Pain
Despite the potential for Bitcoin to soar in the long term, Park warned that the immediate effect of the trade war would result in severe short-term financial pain and wealth destruction across global financial markets. However, he remains optimistic that the long-term adoption of Bitcoin as a hedge against currency depreciation will ultimately drive its price higher.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/trumps-trade-policies-will-lead-to-bitcoins-surge-analyst-says/