The commercial prices of American president Donald Trump will send the prices of Bitcoin (BTC) “violently higher” long -term due to a weakening of the US dollar in the world money market and yields lower than the titles of the US government, Jeff Park , Chief of Alpha Strategies at Financial Company of Services argued Bitwise.
According to the analyst, prices are pushed to reach the final goal of weakening the US dollar in international trade to correct commercial imbalances and making American exports more attractive.
Park said that the “Plaza Agreement 2.0 arrives”-a reference to a 1985 agreement between the United States, Japan, Western Germany, France and the United Kingdom to weaken the US dollar .
The analyst added that the prices will cause increased inflation which will be felt disproportionately by American trade partners and will lead to new monetary discharge from the world that will bring citizens of these countries to seek alternative reserve assets like Bitcoin.
Jeff Park has an argument for prices that send higher BTC prices. Source: Jeff Park
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Trump prices send crypto markets in fall
Despite a potentially positive long -term prices perspective, as Jeff Park pointed out, cryptographic markets have dropped in reaction to President Trump’s recently announced prices on Canada, China and Mexico.
The price of Bitcoin decreased by around 7.2% in the last seven days – competing better than most altcoins.
Coinmarketcap data show that altcoins have gained the weight of blows, with ether (ETH), soil (soil) and XRP (XRP) capitalization staples falling by around 11.6%, 19.3% and 16 , 6% in the last seven days, respectively.
Investors see the trade war potentially accelerating inflation in the coming months and have sought refuge in risk assets such as coverage against macroeconomic uncertainty.
The US dollar shows the short -term strength
The US dollar currency index (DXY), which is a measure of the strength of the US dollar compared to other fiduciary currencies, has increased regularly since October 2024.
The dollar has been in force since October 2024, according to the Dollar Currency Index (DXY). Source: Tradingview
In January 2025, the strength of the dollar withdrew slightly but partially traced from the land lost in the first days of February 2025.
An increase in the US dollar and an increase in yields in US dollars could express problems for the short -term price of Bitcoin and other risky assets, as investors swivel more risky assets to US government securities.
This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.
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