Recent trade tariffs announced by the US government have caused concern among investors, which has led to a drop in cryptocurrency markets.
As tariffs were imposed on Canada, China, and Mexico, many traders reacted by moving their funds into safer investments, fearing economic instability.
However, Jeff Park, head of alpha strategies at BitWise, believes these policies could benefit Bitcoin
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He stated in a February 3 post on X:
Tariffs might be just a temporary tool, but the permanent conclusion is that Bitcoin is not only going higher—but faster.
Park argues that the tariffs are part of a broader effort to weaken the US dollar in global trade. A lower dollar value would make American goods more competitive, which would help to reduce trade imbalances.
Park compared the current situation to the “Plaza Accord of 2.0“, a 1985 agreement between the US, West Germany, France, Japan, and the UK that intentionally weakened the dollar. He believes a similar shift is happening, with trade policies being used instead of direct currency interventions.
As inflation rises due to these tariffs, other countries may also see their currencies lose value. When national currencies weaken, people often look for alternative ways to store their wealth. Park suggests that Bitcoin could become one of those alternatives, especially in regions where inflation is felt the most.
Meanwhile, Russia recently pushed back against warnings from US President Donald Trump regarding potential tariffs on BRICS nations. What did Russia’s spokesperson say? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
