Trump's Customs Duties Sudden Drop Crypto Market: Analyst deeply evaluated its meaning for Bitcoin! "Incredible for BTC..."

After US President Donald Trump's decision to impose customs duties on Mexico, Canada, and China, the cryptocurrency market experienced a sharp decline.

However, Bitwise analyst Jeff Park believes that this economic turbulence can accelerate Bitcoin's growth through underlying financial dynamics and strategic policy moves.

According to the Park, the existing customs duty strategy should be seen 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 situation has three major effects:

• Excessive Appreciation of the US Dollar - The value of the dollar remains artificially high because global economies hold it as a reserve.
• Continuous US Trade Deficits - The US must constantly run a trade deficit to supply the world with dollars.
• Cheap Government Borrowing - The US can borrow at lower costs than it should be.

Park explains that the US seeks to exploit the third clause while aiming to correct the first two clauses by using customs duties as a negotiating tool. According to Park, the ultimate goal is to press for a multilateral agreement that will reduce the value of the dollar in a manner similar to the Plaza Accord of today. This could involve forcing countries to reduce their dollar reserves while restructuring US Treasury assets.

Park, beyond global trade, highlights Trump's personal economic motives, especially his interest in lowering the 10-year Treasury bond yield. Revealing Trump's benefit from low interest rates as a real estate investor, it explains his pressure on Federal Reserve Chairman Jerome Powell to lower interest rates. Park anticipates that Trump will take any necessary measures to bring down the 10-year bond yield.

Park argues that customs duties will trigger an increase in US risk assets by causing the weakening of the dollar and the decline in US interest rates. Meanwhile, foreign countries affected by customs duties may further weaken their currencies by resorting to economic stimulus policies. It is claimed that this scenario will push global investors to seek alternatives, and Bitcoin will benefit the most from this.

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, US investors seeking refuge, and foreign nationals grappling with currency depreciation turn to Bitcoin as a store of value. The result? According to the analyst, a rapid and dramatic increase in Bitcoin's price.

Park, who summarizes the analysis, argues that a long-term customs duty war would create an ideal environment for the continuous rise of Bitcoin. Park argues that Bitcoin's price will rise faster than most people expect by rejecting traditional economic models that do not take into account geopolitical maneuvers.

Park concluded his remarks as follows: "You have not yet grasped how great a continuous customs duty war would be for Bitcoin in the long term."