Why can Trump’s tariff actually be good for Bitcoin

To date, the encryption market has not been behaved as expected under Trump’s management. Investors were hoping that organizational reform and policies such as Bitcoin’s strategic reserves would significantly increase prices. But it was the opposite. Bitcoin fell from its highest levels above $ 100,000 at the beginning of the year to a basin in the middle of 80,000 in most of March.

The encryption prices have suffered from being increasingly linked to traditional assets such as stocks and bonds, which were afflicted with total economic certainty. Customs tariffs – additional, American places on imports from other countries – are concerned about Wall Street of global recession. Investors in the encryption were out of the encryption assets, which were seen as relatively fraught with risk.

“Everything is related to” risk appetite “that continues to deteriorate, and for the time leads a wedge between the assets of encryption and gold, which is still” a favorite “safe haven,” said Mark Ostwald, the world’s chief economist and strategy in AdM International Services.

“[That’s] In any small part paid by the FX Central Bank reserve managers, who are seeking to reduce the exposure of the dollar, which has long been a source of concern for them. “

Since the global financial and commercial system is more fragmented, investors are looking for alternatives to the most dangerous assets, including dollars. Currently, this means the shift to gold, which increased by 18 % from year to date.

“The beginners of technology that no one understands,” said Umarid Malikan, assistant professor at Colombia College of Business and author of “Blockchain Story: Beginning Directors of Technology that no one understands.” New Bitcoin can be new golden.

“I think it is all [future] In some ways, in some aspects, there are many crosses and new codes and new definitions. Some people argue that Crypto is just a technical asset for risk and will be sold due to the customs tariff. But Bitcoin has been found in some circles such as “digital gold” and material diversity rises on customs tariff news. So what will be? “

In other words, economic uncertainty may lead investors to search for bitcoin just as they sought gold in recent months.

Another observation of the positivity of the leading asset management, said Zak Bandel, head of research at Grayscale, a leading company in the leading asset management field in the field of asset management.

President Trump is scheduled to announce the American definitions on Wednesday, April 2, at 4 pm “Editing Day.” According to reports, it will put a “mutual tariff” against 15 countries that imposed a tariff against the United States, including China, Canada and Mexico.

PANDL Customs tariff actions so far 2 % of economic growth this year. But the liberation day may actually stop the worst pain he felt in the financial markets. “If we see an advertisement [on Wednesday] This is difficult but gradually, and focuses on the fifteen countries that seem to be targeting, and my expectations is that the markets will gather on this news. ”

“We are likely to get to know this advertisement, encryption markets can focus on the basics that are very positive.”

Bandel said the ads Like the general subscription of the department It will not happen if the institutions do not have a high degree of confidence in the digital assets sector and its surrounding policies.

Moreover, PANDL, the former Goldman Sachs, believes that the customs tariff will increase the appetite of currencies that are not in dollars.

“I think the customs tariff will weaken the dominant role of the dollar and create a space for competitors, including bitcoin. Prices have decreased in the short term.

Pendl still believes that Bitcoin will reach the highest new levels ever this year, despite the current pessimism about prices. “I will not leave my job in Wall Street if I don’t think Bitcoin would be the long -term winner,” he said.