Global trade wars, inflationary pressures, geopolitical tensions and rising public debts are seriously shaking the foundations of the traditional financial system around the world. Such multifaceted macroeconomic stressors are questioning the sustainability of monetary policies, especially in developed economies. Trade tensions between the US and China, Europe and Russia, and even India and some regional actors are not only disrupting supply chains, but also weakening global growth expectations through the spread of tariffs and protectionist policies.
How Do Analysts React to This Situation?
Ray Dalio, founder of Bridgewater Associates, states that trade tariffs have not only economic but also strategic consequences. According to Dalio, these tariffs can reduce countries’ dependence on foreign production and capital, and thus prepare for great power conflicts. However, the inflationary effects of these policies should not be ignored. Dalio emphasizes that the rising debt levels of the US are unsustainable and that these imbalances must be remedied.
Cryptocurrency analyst Anthony Pompliano says that the decline in interest rates and the increase in global liquidity could positively affect the value of Bitcoin. Pompliano says that Bitcoin has an 83% correlation with global liquidity, and that cheap money entering the market could make BTC the biggest winner.
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From this perspective, trade wars and economic uncertainties seem to direct investors to decentralized and limited-supply assets like Bitcoin. Bitcoin is called digital gold and is positioned as a hedge against inflationary pressures and economic fluctuations.
While global economic turmoil and trade wars are shaking trust in traditional financial systems, they are accelerating the adoption of cryptocurrencies like Bitcoin. While investors are looking for alternative solutions to the weaknesses of the current financial order, the value storage features and independent structure offered by Bitcoin make it an attractive option.
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