Analyst Jeff Park from BitWise posits that U.S. President Donald Trump's trade tariffs will ultimately lead to a dramatic increase in Bitcoin prices due to a weakened U.S. dollar and reduced yields on government securities. Park argues that the tariffs aim to correct trade imbalances, making U.S. exports more competitive. He predicts a scenario reminiscent of the 1985 Plaza Accord that sought to devalue the dollar. As inflation rises from these tariffs, it will likely prompt trading partners to seek alternative assets like Bitcoin for value preservation. Despite this long-term outlook, Bitcoin's price recently dipped approximately 7.2% following Trump's tariffs on Canada, China, and Mexico. Market analysis indicates that inflation fears may have investors retreating to safer assets. The U.S. Dollar Index (DXY) has been showing strength, posing potential short-term pressure on Bitcoin and riskier assets as investors shift towards government securities.

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