Analysts: No country can win in a global trade war, and the price of Bitcoin will soar as a result.

On April 6, according to Bitwise analyst Jeff Park, President Trump’s trade policies will trigger global macroeconomic turmoil and a short-term financial crisis, ultimately leading to greater adoption of Bitcoin as a store of value asset. Park believes that the economic instability brought about by the trade war will prompt governments to adopt inflationary fiscal and monetary policies, further devaluing fiat currencies and causing a global flight to alternative store of value assets, such as Bitcoin. The analyst concludes that this increase in demand for Bitcoin will significantly drive up its price in the long term. Park previously predicted the immediate effects of the trade war in a tweet on February 2: “Tariff costs are likely to be borne jointly by the U.S. and its trading partners through higher inflation, but the impact on foreigners will be relatively heavier. These countries will then have to find ways to address their growth weakness issues.” Although the demand for Bitcoin as a store of value asset against rapidly depreciating fiat currencies will push BTC prices higher 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.