YEREVAN (CoinChapter.com) — Jeff Park, Head of Strategy at Bitwise, believes that tariffs will impact Bitcoin’s long-term value, even as short-term volatility continues. In a Feb. 2 post on X, he described this as his “highest conviction macro trade for the year.”
Jeff Park Tariff Insight. Source: XPark pointed to two key economic factors: the Triffin dilemma and Trump’s economic policies. These, he argued, are essential to understanding how tariffs might affect Bitcoin price movements.
How Tariffs Affect Bitcoin’s Value
The Triffin dilemma highlights the challenge the U.S. dollar faces as the global reserve currency. The United States benefits financially from this status but must maintain trade deficits to provide enough dollars for global use.
Park suggests the U.S. government could attempt a controlled dollar devaluation, similar to the 1985 Plaza Accord, when major economies cooperated to lower the dollar’s value. He described tariffs as a tool to reduce the amount of U.S. dollars held by foreign investors while shifting their focus away from U.S. government debt.
Park also pointed to Trump’s plans to lower U.S. bond yields and reduce reliance on foreign capital. He argued that this approach could increase Bitcoin adoption, as investors seek alternatives to inflation and currency devaluation.
“As the world enters a sustained tariff war, the demand for Bitcoin will skyrocket,” Park stated. “Both U.S. investors and foreign market participants will flock to Bitcoin for different reasons, but the outcome remains the same—higher prices, and at an accelerated pace.”
Bitcoin Drops After New Trade Tariffs Announced
The crypto market reacted sharply after President Donald Trump introduced new tariffs on Canada, China, and Mexico on Feb. 1. The announcement triggered a broad sell-off in digital assets.
Bitcoin’s price showed a slight upward movement toward $99,618 as of 19:02 UTC. Despite recent market volatility, the price did not fall near the $90,000 mark. Trading activity remained consistent, with the RSI indicator reading 55.81, signaling neutral momentum. Altcoins likely followed a similar trend.
Bitcoin Chart February 2025. Source: TradingViewThe overall crypto market declined by 11% in the last 24 hours, wiping out more than $400 billion. By Monday, prices had reached their lowest levels of the year. According to Coinglass, more than 700,000 traders were liquidated, with total losses reaching $2.2 billion.
Liquidation Heat Map. Source: CoinGlassBTC’s Long-Term Impact Amid Tariff Policies
Despite short-term losses, Park maintained his view that tariffs will have a lasting impact on Bitcoin demand. He emphasized that economic shifts could strengthen Bitcoin’s role as a hedge against currency fluctuations.
“You simply have not yet grasped how amazing a sustained tariff war is going to be for Bitcoin in the long run,”
he stated.
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