Part 2 of the Binance Report: Tariffs, Unrest, and the Role of Bitcoin
We examined the tariffs and the chaos they produced in part one of our Binance report. The role of Bitcoin will be examined in this section, #2.
With these tariffs, what is the bottom line for the Binance Report? Our foundation is the most current Binance report. Let’s get started.
Confirmation of Trump’s Reasons for Tariffs
There was a lot of evidence today supporting Trump’s tariff demands. We made the case in our first section that Trump needs the 10-year bond interest rates to drop. Large holders of these bonds are, nevertheless, liquidating their holdings.
Instead of falling, this leads to a rise in interest rates. This might have played a significant role in Trump’s decision to halt tariffs for 90 days. Take a look at this response. Read the entire X thread at your leisure.
Like yesterday, it is still unclear what this pause exactly means. The trade war is still raging., full-on. Trump raised the Chinese tariffs to 145%, up from 125% yesterday.
Meanwhile, other alternatives are being considered by the European Union. Negotiations to remove EU tariffs on Chinese electric vehicles have started. Following the Trump tariff war, the EU also decided to begin trade negotiations with the United Arab Emirates. There is the possibility of free trade between the two.
What Does This Mean for Bitcoin?
All of this will cause agony in the near future. Pain for the cryptocurrency industry and the stock market. Bitcoin continues to rise and fall like a happy child. But as of yet, no significant actions have been taken. Cody did not rule out that $BTC could yet fall to the $72k mark in today’s Altcoin Buzz news video.
On the other hand, it’s quite favorable for Bitcoin in the long run. The value of the US dollar continues to decline.
On the other hand, the gold price keeps rising. It has been doing this for the last six months. Bitcoin is likely to follow.
Here’s a great comparison between gold and Bitcoin.
Additionally, we observed that Bitcoin separated from the stock market. The cryptocurrency industry stood up and maintained its prices when markets fell. In contrast to stocks, there was less volatility. Bitcoin began to give way after a few days, but it also continued to recover. We haven’t left the woods yet, though. But it’s evident how Bitcoin differs from more conventional asset classes.
This lends a sense of security to Bitcoin. Bitcoin makes its way through a global economy that is protectionist. particularly with fiat devaluation and monetary inflation on the table. Bitcoin can demonstrate its strength at this point.
The macroeconomic environment of today is complicated. One possibility is stagflation. This term combines the words inflation and stagnation. This is discussed when inflation rises and economic growth stagnates.
Meanwhile, more nations and large corporations are thinking about include Bitcoin in their holdings. This is very significant for Bitcoin. Long-term, Bitcoin appears to be headed only in one direction: upward.
In conclusion
Since the 1930s, we have not had as harsh tariffs as we do now. We learned more about the implications of the tariffs from a recent Binance report. To put it briefly, they are causing a stir in the financial markets. Bitcoin, though, is beginning to show promise as a haven. The near future will be volatile. However, the outlook for Bitcoin appears favorable in the long run.
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