On April 6th, according to Bitwise analyst Jeff Park, US President Trump's trade policies will trigger global macroeconomic turbulence and short-term financial crises, ultimately driving larger scale adoption of Bitcoin as a value storage asset. Park believes that the economic instability brought about by the trade war will prompt governments around the world to adopt inflationary fiscal and monetary policies, which will further devalue fiat currencies and lead to a global search for alternative value storage assets such as Bitcoin as safe haven behavior.
Analysts have concluded that this increase in demand for Bitcoin will drive its price up significantly in the long term. In a tweet released on February 2nd, Park predicted the immediate impact of the trade war: "The cost of tariffs is likely to be shared by the United States and its trading partners through higher inflation, but the impact on foreign countries will be relatively heavier. These countries will then have to find ways to address their weak growth
Despite the increasing demand for Bitcoin as a value storage asset against rapidly depreciating fiat currencies, which will drive up BTC prices in the long term, Park stated that global financial markets will feel the short-term pain and wealth destruction brought about by the trade war.
