Bitcoin surged past 102,000 USD as the U.S. dollar weakened, amid reports that President-elect Donald Trump's team is considering a scaled-back tariff plan. This move not only drew attention in the #crypto market but also opened up many potential scenarios for the global economy.
Main Information About Customs Tax Plan
According to The Washington Post, the team of #TRUMP may limit the 'universal' tariff policy to key imported goods, focusing on essential areas such as:
• Medical supplies.
• Energy production.
Trump responded on Truth Social, dismissing this information and asserting that his tax policy would not be narrowed. Earlier, he proposed a 20% tax on all imports and 60% on goods from China, according to PBS News.
Bitcoin and the Impact of Tariff Policy
The U.S. dollar, measured by the DXY Index, fell 0.6% to 108.29 on Monday, after reaching its highest level since 2022 last week (109.43). This provided momentum for #bitcoin to surpass 100,000 USD, a price level first achieved in over two weeks.
According to Zach Pandl, Director of Research at Grayscale:
• Short term: High tax policy may strengthen the dollar, putting pressure on Bitcoin prices.
• Long term: The trend of increasing tariff usage may drive a shift from the dollar-based international financial system to alternative assets such as physical gold and $BTC .
Interest Rate Context and Market Volatility
The U.S. Federal Reserve (Fed) recently reduced its forecast for interest rate cuts this year from four times to two times, with each cut being 0.25%. Lower interest rates typically support risk assets such as Bitcoin by reducing borrowing costs and increasing appeal compared to safe investments like bonds.
Last month, Bitcoin reached a record high of 108,000 USD but then fell due to the Fed's more cautious stance on interest rate cuts.
Conclusion
The strong increase of Bitcoin surpassing 102,000 USD is evidence of the crypto market's sensitivity to economic policy fluctuations. While short term may face pressure from tax and interest rate policies, long term, Bitcoin continues to be an attractive alternative in the context of an increasingly fragmented international financial system.