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BitcoinSistemi 2025-02-05 20:41:09

Are Donald Trump’s Tariffs a Big Bull for Bitcoin? Analysts Reveal the Truth

Last Saturday, US President Donald Trump issued three executive orders imposing universal tariffs on Mexico, Canada and China, based on the International Emergency Economic Powers Act (IEEPA). But diplomatic negotiations have since left the tariffs on Mexico and Canada unclear, a move that has sparked debate over their economic impact and potential consequences for the long-term dominance of the U.S. dollar. Some analysts argue that the recent tariffs could accelerate a global shift towards alternative assets such as Bitcoin as investors seek shelter amid rising trade tensions. CoinShares Research Head James Butterfill commented on the matter in his statement: “The dollar’s share of world trade is decreasing and the dollar is losing its status as a global reserve asset over time. If you put in more regulations like the IEEPA, the moment you do something that could destabilize a country’s currency, Bitcoin becomes a much more attractive option.” Related News: Special Metric Used for Ethereum: What to Expect in the Days Ahead? Is Sentiment Bearish or Bullish? Butterfill highlighted Bitcoin’s role in balancing government policies, noting its unique network effects. “Bitcoin keeps malicious governments in check and has network effects that no other currency has. There is a strong correlation between economic instability and Bitcoin’s growth,” he added. According to Reuters, the Trump administration has used the IEEPA to bypass traditional trade regulations and justified the tariffs as a response to a national emergency. Cryptocurrency derivatives trader Gordon Grant also touched on the potential economic consequences, arguing that the IEEPA measures could lead to a decline in the value of the US dollar: “The dollar still acts as a risk-off haven, but at some point in the medium to long term, given the risks identified in the enactment of the IEEPA, will people want to hold US dollars? All of these factors could support self-sovereign, portable digital capital like Bitcoin.” *This is not investment advice. Continue Reading: Are Donald Trump’s Tariffs a Big Bull for Bitcoin? Analysts Reveal the Truth

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