US President Donald Trump’s trade policies will create worldwide macroeconomic turmoil and short-term financial crises that will ultimately lead to greater adoption of Bitcoin (BTC) as a store of value asset, according to Bitwise analyst Jeff Park.
Economic instability from the trade war will cause governments to adopt inflationary fiscal and monetary policies, which will further debase currencies and lead to a worldwide flight to safety in alternative stores of value, like Bitcoin, Park argued.
This increased demand for BTC will drive prices much higher in the long term, the analyst concluded. In an X post on Feb. 2, Park predicted the immediate impact of a 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.