$BTC
Market analysts predict long-term crypto gains from economic disruption
International economic pressure on crypto and other assets will be unevenly spread between the US and its trading partners due to the trade war.
“The tariff costs, most likely through higher inflation, will be shared by both the US and trading partners, but the relative impact will be much heavier on foreigners,” Park wrote on X on February 2. He noted that impacted nations would struggle to handle growth issues.
Bitcoin may ultimately benefit, but Park predicts worldwide market misery first. Crypto would rise despite economic suffering and wealth loss from trade wars.
Crypto Impact: Experts Call New Tariffs ‘Stagflationary’
In an April 2 social media statement, economist and hedge fund manager Ray Dalio called tariffs “stagflationary for the world as a whole”. He emphasized that tariffs deflate nations producing taxed items and inflate those importing them.
Dalio predicts a massive financial system upheaval due to global debt and trade imbalances. The decades-old global monetary order may change with this transformation.
Lower interest rates may indicate market strategy
Financial watchers say economic turmoil may be purposeful. Asset manager Anthony Pompliano said that the president may be upsetting financial markets to decrease interest rates and cut US debt management costs.
From 4.60% in January to 4.00% now, 10-year US Treasury bond interest rates have declined. While this method produces short-term market hardship, Pompliano believes lower interest rates will promote borrowing and raise asset values.
According to this concept, Bitcoin and other risk assets may gain in the long term despite tough trade policies' immediate economic hurdles.