Markets
Trump would drive up inflation. That’s not good for crypto, analyst says – DL News
- Tax cuts, tariffs and a weaker dollar lead to inflation, Noelle Acheson said.
- Higher inflation means less demand for risky assets, like cryptocurrencies.
Former President Donald Trump is pro-crypto.
he is encounter with leading Bitcoin miners and talk at an industry conference, while support for cryptography is even part of the Republican Party’s election campaigns platform.
Many industry players swoon on Trump and I think he’s going to “inflate their bags.”
But could Trump’s economic policies end up hurting cryptocurrency markets, rather than helping them?
If we assume that the former president’s economic platform leads to higher inflation, then yes, crypto and macroeconomic analyst Noelle Acheson said in a statement. recent newsletter.
High inflation, low risk
Trump wants to “end inflation,” according to the Republican Party’s electoral platform.
However, GOP proposals to cut taxes, implement broad tariffs and push for a weaker dollar typically lead to inflation, Acheson says.
She is not alone in making this analysis. This is also what 16 Nobel Prize-winning economists have supported, according to Axios.
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JP Morgan has offered a similar analysis.
“Lower inflation means lower interest rates, which should be good for risk assets, including cryptocurrencies,” Acheson wrote. “Higher inflation, maybe not so much, at least in the short term.”
To be fair, she went on to explore how Trump’s push for a weaker dollar could also lead to currency turbulence, which could then make assets like crypto more attractive.
“This should be good for BTC,” she wrote, “as currency turbulence will increase the appeal of a hard-supply-capped asset that can diversify reserves while remaining insensitive to geopolitics.”
Cryptocurrency Market Players
Bitcoin is up 1% over the past 24 hours to $67,479.
Ethereum was barely changed, up 0.1% over the same period, to around $3,499.
Solana jumped 4.7% to around $181.
What we read
Biden withdrawal sends Bitcoin plummeting as Harris-themed memecoin surges 131% — DL News
How the Cryptocurrency Market Reacted to Joe Biden Dropping Out of the Presidential Race — unleashed
WazirX Shuts Down Trading After $230 Million Exploit, Offers Bounty for Recovered Funds — The block
Hong Kong exchange BitForex resurfaces after disappearing with $57 million — DL News
Ben Weiss is a Dubai correspondent for DL News. Got a tip? Email him at bweiss@dlnews.com. A previous version of this article displayed an incorrect price for Solana.