Bitcoin Surge Predicted as Trump's Tariffs Weaken Dollar
1min read Analysts Predict Bitcoin Surge as Trump’s Tariffs Weaken Dollar
The cryptocurrency market has been experiencing heightened volatility following US President Donald Trump’s announcement of new trade tariffs on key global partners. While some analysts suggest these policies could drive Bitcoin prices higher in the long run by weakening the US dollar, the immediate impact has been a sharp sell-off across crypto assets. Over the past weekend, the market saw over $1 billion in liquidations as investors reacted to growing concerns over inflation, interest rates, and macroeconomic uncertainty. As the situation unfolds, market participants are closely watching for further developments that could shape the future trajectory of digital assets.
US President Donald Trump’s latest round of trade tariffs has sparked intense debates regarding the future of the US dollar and its influence on global markets. According to Jeff Park, head of alpha strategies at financial services firm BitWise, these tariffs may have a significant long-term effect on Bitcoin (BTC) prices, potentially driving them “violently higher.”
Park argues that Trump’s trade policies are engineered to devalue the US dollar in international markets, aiming to correct trade imbalances and make US exports more competitive. This strategy, he asserts, echoes historical precedents, such as the Plaza Accord of 1985—a multilateral agreement between the United States, Japan, West Germany, France, and the UK to weaken the dollar. If a similar scenario unfolds, the resulting economic shifts could bolster Bitcoin’s appeal as a hedge against currency depreciation.
One of the key reasons Park believes Bitcoin will benefit from Trump’s tariffs is the inflationary pressure they may exert on the global economy. As tariffs lead to higher costs for imported goods, inflation could accelerate both in the US and among its major trading partners. The impact will be particularly severe for countries heavily reliant on trade with the United States, as they may face weakened national currencies and a loss of purchasing power.
As the value of fiat currencies erodes, people worldwide may increasingly turn to alternative store-of-value assets, such as Bitcoin, to preserve their wealth. Bitcoin’s decentralized nature and fixed supply make it an attractive option in times of economic uncertainty and inflationary risk.
Park’s theory suggests that a broader shift toward Bitcoin adoption could emerge as investors and citizens seek refuge from fiat currency instability. While gold has traditionally played this role, Bitcoin’s digital nature and ease 
