Analysts criticize the financial consequences of the US President Donald Trump’s President Tariffs, which, according to some, emphasizes the unique Bitcoin economic real estate in times of global uncertainty.
90-day Pause Trump about higher mutual tariffs, returning them to 10% of the base line for most countries except China, revealed gaps on the American bond market, according to critics.
Economist and author Bitcoin StandardSaifedean Ammous, said that Trump’s decision to reverse higher tariffs was probably a reaction to the growing profitability of bond, which suggests that the hand of administration was forced.
“Trump fought the bond market and won the bond market,” said Ammious on April 23 x post. “Gambit seemed to act on the first day, and a huge disaster on the stock exchange was presented as a small price for sustainable fiscal development.
“But then the bonds began to disappoint and it became clear how catastrophic tariffs were and how bad it was to expect that the intentional failure of the stock market would augment the bond market,” he added.
Related: The escalation of the Trump tariff reveals “deeper fractures” in the global financial system
Spike State Treasury after tariff movement
After Trump’s tariff announcement, CNBC data show that the 10-year treasure profitability increased from less than 4% to 4.5% in connection with the sale of concerns related to inflation and recession.
“The augment in profitability was the exact opposite of what the administration wanted, and the reversal of the tariff course half a day after the entry into force was absolutely devastating for the negotiating position of Trump,” said Ammous.
Some analysts, including Global Macro Investor, Raoul Pal, suggested that tariff maneuvering could be a “attitude” so that the US could achieve a trade agreement with China.
“The whole conversation about China fastening under the threat of Trump sounds in retrospect when Trump could not keep his tariffs for two days,” said Ammous, adding that China “showed absolutely no inclinations” to reach and conclude a contract.
Delays in achieving a trade agreement may limit the recovery of both capital markets and cryptocurrencies, which depend on the results of commercial negotiations, according to Nansen analysts.
Meanwhile, Bitcoin (BTC) behaves “less as technological inventory, and more protection against economic uncertainty”, after Trump signaled “a significant reduction in tariffs for Chinese goods,” said CointeLgraph, Nexo Dispatch analyst.
Related: Crypto, Actions introduce “a novel phase of trade war” when US-China tensions are created
Trade Wars to the need for the Bitcoin standard
The situation enlivened long -term proposals for the support of the American dollar with Bitcoin.
Ammio he said The United States should continue to buy BTC until the government maintains enough to fully support the dollar delivery, ultimately switching the Bitcoin standard:
“Buy bitcoins, as long as the value of the Bitcoins owned by the US government is sufficient to support the entire supply of the American dollar, and then go to the bitcoins standard, in which dollars can be exchanged for bitcoins and let the government never spend more than earn.”
Historically, the dollar was supported by gold and can be mentioned a fixed amount of precious metal until 1933, when President Franklin D. Roosevelt suspended gold in response to a great crisis.
In 1971, President Richard Nixon stopped the dollar convertible for gold, aimed at protecting gold reserves in the USA and stabilization of the economy, marking the beginning of the Fiat currency system that remains in place.
The constant supply of Bitcoin, which is coded in tokenomics, makes him a popular digital gold competitor.
Joe Burnett, director of market research in Unchained, predicted that Bitcoin could compete or exceed the Gold market capitalization in the next decade, predicting that the Bitcoins price would exceed $ 1.8 million to 2035.
https://www.youtube.com/watch?v=hb0z1ti8uys
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