Tariff Escalation Could Propel Bitcoin, Says Bitwise Expert

A growing trade dispute could fuel Bitcoin’s rise, according to Jeff Park of Bitwise Asset Management.

He suggests that escalating tariffs may ultimately strengthen the case for BTC as a hedge against economic uncertainty.

Over the weekend, Donald Trump imposed steep tariffs on imports from Canada, Mexico, and China. In response, Canada and Mexico announced retaliatory measures.

Park views these tariffs as part of a broader strategy tied to the Triffin dilemma—the challenge of maintaining the U.S. dollar’s dominance while managing trade deficits.

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He argues that Trump, heavily invested in real estate, likely seeks to drive down Treasury yields by weakening the dollar. A declining dollar and lower interest rates could push U.S. risk assets higher while destabilizing foreign markets, potentially leading investors toward Bitcoin.

While Park sees Bitcoin thriving in the long run, the immediate market reaction was severe. Bitcoin briefly plunged to $91,281, with Ethereum hitting $2,143, erasing billions in value. Over $2.23 billion was liquidated in just 24 hours—one of the largest market wipeouts ever, surpassing previous crashes tied to LUNA and FTX.

Alexander Stefanov