In the escalation of global economic friction, the imposed tariffs of President Trump realized the financial markets this week, cutting both actions, bitcoins and cryptocurrencies. However, fresh note Since Bitise Asset Management suggests that these winds can ultimately drive bitcoins to fresh highlands – regardless of whether the Trump’s strategy is going or fails.

At the beginning of the week, the cryptographic market witnessed a earnest sale. Bitcoin fell by about 5%, while Ethereum and XRP suffered even sharper losses – 17%and 18%, respectively. The direct catalyst was the application of Trump’s 25% tariff on most imports from Canada and Mexico, as well as 10% tariff to China. In retaliation, these trading partners announced their own remedies.

The American dollar reacted, jumping by more than 1% compared to the main currencies. This, in combination with the ongoing weekend dislocativity in cryptographic markets, caused a wave of forced liquidation, because lewed traders sold themselves with implementation. According to Bitweise’s investment director, Matt Hougan, up to $ 10 billion in levied positions, was erased in what he described as “the largest liquidation event in the history of cryptocurrencies.”

Despite the dramatic price, the head of the Alfa Bitwa strategy, Jeffrey Park, remains optimist as to Bitcoin’s trajectory. He points to two main ideas that shape his stubborn work: “Triffin dilemma” and the broader goal of President Trump to restructure the dynamics of America’s trade.

The Triffin dilemma emphasizes the conflict between the currency serving as a global reserve – generating consistent demand and transplant – and the need to conduct lasting trade deficits to provide sufficient currency abroad. Although this status allows the US to borrow cheaply, it also exerts indefinite pressure on domestic production and export.

“Trump wants to get rid of negatives, but keep positive,” explains the park, suggesting that tariffs can be a negotiating tool to force other nations to the table – deprived of the Plaza agreement from 1985, which devaluated the dollar in coordination with other main economies.

Two scenarios: Bitcoin wins, FIAT loses

The park claims that Bitcoin can take advantage of two separate results of the current Trump trade policy:

Scenario 1: Trump managed to weaken the dollar (while maintaining low rates)

If Trump can maneuver a multi-sided-akin contract for “Plaza Accord 2.0”-to reduce the exaggeration of the dollar without increasing long-term interest rates, the risk of risk among American investors may enhance. In this environment, an uninterrupted resource, such as Bitcoin, free from capital control and dilution, would probably attract additional influence. Meanwhile, other nations struggling with the fall of a weaker dollar may arise fiscal and cash stimuli to support their economies, potentially driving even greater capital towards alternative assets such as Bitcoin.

“If Trump can intimidate its position, there is no better resource than Bitcoin. Lower rates will cause an appetite for the risk of American investors, sending high prices. Abroad, countries will have to face weakened economies and ask the classic economic stimulus to compensate, leading again to higher Bitcoins prices, “says the park.

Scenario 2: long -term trade war and huge money printing

If Trump does not provide an extensive agreement and the trade war continues, the global economic weakness would almost certainly invite a immense cash stimulus from central banks. Historically, such liquidity injections were stubborn for Bitcoins on a huge scale, because investors are looking for deflating and decentralized isolated assets from central bank policies

“What happens? What if we get a lasting tariff war instead? Our view with a high content is the resulting fact that the economic weakness will lead to printing money on a scale greater than we have ever seen. And historically such a stimulus was extremely good for Bitcoins, “says the park.

During the BTC press it traded at USD 98,557.

A distinguished painting created from Dall.e, chart from tradingview.com