United States President Donald Trump’s trade war will trigger a Bitcoin (BTC) bull run, according to Jeff Park, head of alpha strategies at financial services firm BitWise.
Park explained in a recent X post that tariffs will weaken the United States dollar in international trade. This measure aims to correct trade imbalances and make United States exports more attractive.
So far the United States dollar index — measuring the value of the dollar against a basket of foreign currencies — keeps steady at about $109. This value is even slightly higher than the value of 108 reported about a month ago.
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The analyst even foresaw the coming of a “Plaza Accord 2.0,” referencing a 1985 agreement that initiated collaboration between the United States, Japan, West Germany, France, and the UK to weaken the United States dollar. According to him, the tariffs will lead to increased inflation that will be felt by U.S. trading partners and result in currency debasement — leading more capital into Bitcoin and other store-of-value assets.
The tariffs had a significant impact on the cryptocurrency market, but not a positive one. Bitcoin fared a bit better than most other digital assets, trading just over $98,650 at the time of writing after gaining 0.2% over the last 24 hours and losing just 1.26% over the last seven days.
Ethereum experienced a much more significant downturn. At the time of writing, it trades at $2,700 after losing 10.6% in the last 24 hours and 12.6% in the last seven days.
Trump’s own memecoin also lost much of its value since its launch. Recent analysis shows that Trump Official (TRUMP) lost about 75% of its value compared to peak prices, trading at about $19 after reaching peaks of over $75.
Still, the initiative has seemingly worked out for Trump himself. According to recent reports, the memecoin raked in at least $11.4 million in fees for organizations connected to the president.