Analyst: No country can win in the global trade war, and Bitcoin prices will skyrocket 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 driving 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, which will further devalue fiat currencies and lead to a global search for alternative store of value assets (such as Bitcoin). The analyst concludes that this increased 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 shared by the U.S. 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 cope with their growth slowdown issues.” Although the increased demand for Bitcoin as a store of value asset against rapidly depreciating fiat currencies is expected to drive up BTC prices in the long term, Park stated that the global financial markets will feel the short-term pain and wealth destruction brought on by the trade war.