Bitcoin seems to be the underdog ready to rise from the sidelines, all thanks to the actions of President Trump. With the recent tariff tantrums creating waves across global markets, Jeff Park from Bitwise believes that BTC is destined to shine regardless of whether they lead to a weakened dollar or a prolonged economic showdown.
Over the weekend, Trump threw 25% tariffs on Canada and Mexico and 10% on China, causing quite the stir. The dollar bumped up by over 1% against other currencies, and we saw BTC and ETH dive, dropping about 5% and 17% respectively. Yikes! Talk about a crypto rollercoaster.
The weekend selloff was quite the spectacle, wiping out a staggering $10 billion in leveraged positions, marking a historical liquidation event in the crypto world. The tricky part? Low liquidity in crypto markets tends to crank up the price swings, making it a wild ride.
However, Park remains optimistic. With the looming Triffin Dilemma, the U.S. faces some serious financial gymnastics; issuing the world's reserve currency means balancing a trade deficit while keeping the dollar strong. Doesn't that sound like a financial soap opera?
If Trump manages to coax other countries into a cooperative monetary dance—akin to the 1985 Plaza Accord—Bitcoin could find itself in a sweet spot. Lower interest rates might just have investors flocking to BTC as a safe haven. If negotiations don't pan out and we find ourselves in a prolonged economic standoff, monetary stimulus could also play in Bitcoin's favor. It looks like Bitcoin can play both defense and offense!
In short, whether it’s through a calculated dollar devaluation or an economic downturn pushing stimulus, Bitcoin stands ready for its time to shine. Get your popcorn ready!
No comments:
Post a Comment