Mike Smith
Feb 6
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Donald Trump's decision to use the International Emergency Economic Powers Act (IEEPA) to impose new trade tariffs was a surprise move that could have a significant impact on global financial markets. The introduction of these measures affected China and could potentially affect relations with Mexico and Canada, despite ongoing negotiations.
CoinShares head of analytics James Butterfill is confident that such actions weaken the dollar and increase the attractiveness of alternative financial instruments, among which Bitcoin occupies a leading position. According to him, the reduction in the share of the American currency in international trade has long been a noticeable trend, and new economic barriers can accelerate this process.
Bitcoin has an advantage over traditional assets in that it does not depend on political decisions and the instability of public finances. Butterfill emphasizes that the decentralized nature of the cryptocurrency makes it a convenient tool for protecting capital during periods of economic uncertainty. "Economic instability and the search for reliable assets are closely related, which confirms the growing interest in cryptocurrencies in moments of turbulence," the expert explains.
Earlier, Reuters reported that the US administration resorted to IEEPA to avoid complex procedures provided for by standard trade laws. The authorities explained this need by protecting the national economy, but many experts see this as an attempt to bypass traditional regulatory mechanisms.
Muse Labs Chairman Jiang Jinze believes this approach is a dangerous precedent that can undermine confidence in the dollar. In his opinion, the expanded use of emergency measures in trade policy will only accelerate the transition of global players to alternative units of account, reducing dependence on the American currency.
Gordon Grant, who specializes in trading cryptocurrency derivatives, also notes the risks of dollar depreciation. He emphasizes that although the American currency currently retains its role as a "safe haven", its long-term attractiveness is questionable. “If emergency measures continue to be used as a trading strategy, investors may start looking for more reliable ways to preserve capital,” he says.
A similar view is shared by Bitwise CEO Jeff Park, who compares the current situation to the historic Plaza Accord of 1985, when a weakening dollar was forced to adjust the global balance. He believes that new tariffs could trigger higher inflation and devaluation of national currencies, which will inevitably push investors to look for alternatives, such as Bitcoin.
