Jeff Park, head of alpha strategies at Bitwise, suggests that the tariffs implemented by President Trump could positively influence Bitcoin $98,868 prices. He explains that the tariffs serve to weaken the U.S. dollar and lower U.S. Treasury yields. The government aims to facilitate borrowing at a lower interest cost, he emphasizes.
Economic Impacts of Tariffs
In a social media post, Park articulated that the Trump administration is attempting to encourage long-term Treasury bonds while reducing foreign reserves. This policy is designed to decrease credit costs in the U.S. and alleviate the tax burden.
Jeff Park: “The U.S. is taking strategic steps towards a low dollar and low interest rate.”
Economists believe such measures could have varying effects on inflation and interest rates.
International Ramifications
According to Park, tariffs may compel foreign markets to reduce their dollar reserves, leading them to invest in long-term U.S. bonds. This scenario could increase demand for U.S. 10-year Treasury bonds while resulting in lower interest rates.
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