The head of Alpha strategies at the Crypto Asset Management Firm Bitwise believes that President Trump’s rates will be a large bullish catalyst for Bitcoin (BTC).
Jeff Park says on the social media platform X that Trump uses rates to achieve two goals – weakened the US dollar and lower the yield of the American treasury.
According to Park, the Trump administration “what is needed” will do to reduce the Treasury revenue, so that the government can borrow cheaper and reduce the burden passed on to taxpayers via interest payments.
Park says that Trump probably uses rates to force foreign nations to reduce their dollar reserves in an attempt to weaken the dollar and to force them to keep American treasure chests in the long term. If other countries agree, this will increase the demand for the American 10-year-old treasury, which leads to higher bond prices and vice versa lower returns.
“As a result, the US maps a path to reach the holy grail of Fiat Alchemy: lower dollars and lower yields.”
In such a scenario, park to predict Bitcoin will see much higher prices.
“The possession is therefore Bitcoin. In a world of weaker dollars and weaker American rates, something broken experts will tell that it is impossible (because they cannot model Statecraft), rISK assets in the US will fly through the roof outside your wildest imagination, because it is likely that a huge tax reduction must be accompanied by the higher costs supported by the loss of comparative benefits.
The tariff costs, most likely due to higher inflation, will be shared by both the US and the trading partners, but the relative impact will be much heavier for foreigners.
These countries will then have to find a way to ward off their weak growth problems, leading to the stimulation of the economy by monetary and tax policy that ultimately causes the debasion of currency.
The indignant citizens of these countries will experience a mini-financial crisis and look for alternatives. And unlike the 1970s when the world was largely offline, today we are not only online-We are on-chain. So although both sides of the trade -on -balance comparison Bitcoin want for two different reasons, the end result is the same: higher, violent faster – because we are at war. “
At the time of writing, Bitcoin acts for $ 101,125.
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Generated image: midjourney
