The cryptocurrency market experienced a sharp decline following US President Donald Trump's decision to impose tariffs on Mexico, Canada and China. However, Bitwise analyst Jeff Park believes that this economic turbulence could accelerate Bitcoin’s growth thanks to underlying financial dynamics and strategic policy moves. According to Park, the current tariff strategy should be viewed through the lens of two key factors: the Triffin dilemma and Trump’s personal economic goals. The Triffin dilemma highlights the challenges that arise when a national currency also serves as the world’s reserve currency. This creates three major impacts: Overvaluation of the US Dollar – Its value remains artificially high as global economies hold the dollar as reserves. Persistent US Trade Deficits – The US has to run perpetual trade deficits to supply the world with dollars. Cheap Government Borrowing – The US is able to borrow money at lower costs than it should. Park explains that the US aims to fix the first two clauses by using tariffs as a negotiating tool, while benefiting from the third. The ultimate goal, Park says, is to push for a multilateral agreement that would devalue the dollar, similar to the Plaza Accord of today. This could involve changing the structure of US Treasury holdings while forcing countries to reduce their dollar reserves. Related News: Are the Applications of ETF Applicants DOGE, XRP, SOL, LTC, BONK, MELANIA Altcoins Likely to be Approved? CEO Evaluated Beyond global trade, Park highlights Trump’s personal economic motivations, particularly his interest in lowering the 10-year Treasury yield. Trump’s ability as a real estate investor to benefit from low interest rates explains his pressure on Fed Chair Jerome Powell to lower rates. Park predicts Trump will take whatever measures are necessary to lower the 10-year Treasury yield. Park argues that tariffs will trigger a weakening of the dollar and a decline in US interest rates, leading to a surge in US risk assets. Meanwhile, foreign countries affected by tariffs could resort to economic stimulus policies, further weakening their currencies. He argues that this scenario will push global investors to seek alternatives, and Bitcoin will be the biggest beneficiary. Unlike past economic crises, today’s digital age allows global assets to move instantly. Park envisions a scenario where both sides of the trade war, U.S. investors looking for protection and foreign citizens struggling with currency depreciation, turn to Bitcoin as a store of value. The result? A rapid and dramatic increase in Bitcoin’s price, according to the analyst. Summarizing his analysis, Park argues that a prolonged tariff war would create an ideal environment for Bitcoin’s continued rise. Rejecting traditional economic models that do not take geopolitical maneuvers into account, Park argues that Bitcoin’s price will rise faster than most people predict. “You have yet to grasp how great a sustained tariff war would be for Bitcoin in the long run,” Park concluded. *This is not investment advice. Continue Reading: Trump’s Tariffs Send Crypto Market Plummeting: Analyst Takes an In-Depth Look at What It Means for Bitcoin! “Incredible for BTC…”
