Analysts are criticizing the financial impacts of President Donald Trump's import tax policy – a development that according to some highlights the unique economic characteristics of Bitcoin during times of global instability.
According to critics, Trump's decision to pause the imposition of tariffs for 90 days and revert tariffs to the baseline rate of 10% for most countries ( except China ) has revealed weaknesses in the U.S. bond market.
The economist and author of the book The Bitcoin Standard (, Saifedean Ammous, stated that President Trump reversing the import tax policy is likely a reaction to the rise in bond yields – a sign that the administration has been pressured by the market to concede.
"Trump is fighting against the bond market, and the bond market has won. This move seemed effective on the first day, and the sharp drop in the stock market was seen as a small price to pay to ensure fiscal sustainability. But then the bond market began to plummet, and only then did the severity of this tax policy become clear, as well as the mistake of hoping that deliberately crashing the stock market would help boost the bond market," Ammous wrote in a post on X on April 23.
Bond yields surge following tariff move
Following Trump's announcement on import taxes, data shows that the yield on 10-year U.S. government bonds has surged from below 4% to 4.5%, amid a market sell-off driven by concerns over inflation and economic recession.
!)[bitcoin]https://img.gateio.im/social/moments-13278ac89f0f125d16a763b0d912de5c(The yield on 10-year bonds )one-year chart( | Source: CNBC"The surge in bond yields is completely contrary to the administration's wishes, and the decision to change just half a day after the tariffs went into effect has severely damaged Trump's negotiating position," Ammous commented.
Some analysts, including Raoul Pal – founder of Global Macro Investor – believe that the moves regarding tariffs may just be a "political gimmick" aimed at leveraging America in the process of reaching a trade agreement with China.
"All the claims that China would have to concede under pressure from Trump now sound ridiculous, as he couldn't even maintain his tax policy for two days." Ammous added, emphasizing that China "absolutely does not want" to negotiate or reach an agreement.
According to analysts at Nansen, delays in reaching a trade agreement could hinder the recovery momentum of both the stock market and crypto – which are being affected by the developments in the negotiations.
Meanwhile, Bitcoin is playing a role that is "less like technology stocks and increasingly like a hedge asset against economic instability," according to Iliya Kalchev – an analyst from Nexo dispatch, after Trump signaled about "significantly reducing taxes on Chinese goods."
The trade war raises the demand for Bitcoin standards
The current situation has rekindled long-standing proposals to use Bitcoin to back the US dollar.
Ammous believes that America should continue to buy Bitcoin until the government owns enough Bitcoin to fully back the supply of dollars, eventually transitioning to a Bitcoin standard.
"Continue to buy Bitcoin until the value of Bitcoin held by the American government is enough to secure the entire supply of US dollars, then switch to the Bitcoin standard, where dollars can be exchanged for Bitcoin, and demand that the government does not spend more than its income."
Previously, the dollar was backed by gold and could be converted into a fixed amount of gold until 1933, when President Franklin D. Roosevelt suspended the ability to convert gold in order to cope with the Great Depression.
In 1971, President Richard Nixon ended the ability to convert dollars into gold, in order to protect America's gold reserves and stabilize the economy, marking the beginning of the fiat currency system that we use today.
The fixed supply of Bitcoin, encoded in the token economic structure mechanism, makes Bitcoin the number one rival of gold in the digital world.
Joe Burnett, the market research director at Unchained, predicts that Bitcoin could compete with or even surpass the market capitalization of gold in the next decade, with a price forecast of Bitcoin exceeding 1.8 million dollars by 2035.
Disclaimer:This article is for informational purposes only and is not investment advice. Investors should do their due diligence before making any decisions. We are not responsible for your investment decisions.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
The urgency of Bitcoin standards amidst the America-China trade war
Analysts are criticizing the financial impacts of President Donald Trump's import tax policy – a development that according to some highlights the unique economic characteristics of Bitcoin during times of global instability.
According to critics, Trump's decision to pause the imposition of tariffs for 90 days and revert tariffs to the baseline rate of 10% for most countries ( except China ) has revealed weaknesses in the U.S. bond market.
The economist and author of the book The Bitcoin Standard (, Saifedean Ammous, stated that President Trump reversing the import tax policy is likely a reaction to the rise in bond yields – a sign that the administration has been pressured by the market to concede.
"Trump is fighting against the bond market, and the bond market has won. This move seemed effective on the first day, and the sharp drop in the stock market was seen as a small price to pay to ensure fiscal sustainability. But then the bond market began to plummet, and only then did the severity of this tax policy become clear, as well as the mistake of hoping that deliberately crashing the stock market would help boost the bond market," Ammous wrote in a post on X on April 23.
Bond yields surge following tariff move
Following Trump's announcement on import taxes, data shows that the yield on 10-year U.S. government bonds has surged from below 4% to 4.5%, amid a market sell-off driven by concerns over inflation and economic recession.
!)[bitcoin]https://img.gateio.im/social/moments-13278ac89f0f125d16a763b0d912de5c(The yield on 10-year bonds )one-year chart( | Source: CNBC"The surge in bond yields is completely contrary to the administration's wishes, and the decision to change just half a day after the tariffs went into effect has severely damaged Trump's negotiating position," Ammous commented.
Some analysts, including Raoul Pal – founder of Global Macro Investor – believe that the moves regarding tariffs may just be a "political gimmick" aimed at leveraging America in the process of reaching a trade agreement with China.
"All the claims that China would have to concede under pressure from Trump now sound ridiculous, as he couldn't even maintain his tax policy for two days." Ammous added, emphasizing that China "absolutely does not want" to negotiate or reach an agreement.
According to analysts at Nansen, delays in reaching a trade agreement could hinder the recovery momentum of both the stock market and crypto – which are being affected by the developments in the negotiations.
Meanwhile, Bitcoin is playing a role that is "less like technology stocks and increasingly like a hedge asset against economic instability," according to Iliya Kalchev – an analyst from Nexo dispatch, after Trump signaled about "significantly reducing taxes on Chinese goods."
The trade war raises the demand for Bitcoin standards
The current situation has rekindled long-standing proposals to use Bitcoin to back the US dollar.
Ammous believes that America should continue to buy Bitcoin until the government owns enough Bitcoin to fully back the supply of dollars, eventually transitioning to a Bitcoin standard.
"Continue to buy Bitcoin until the value of Bitcoin held by the American government is enough to secure the entire supply of US dollars, then switch to the Bitcoin standard, where dollars can be exchanged for Bitcoin, and demand that the government does not spend more than its income."
Previously, the dollar was backed by gold and could be converted into a fixed amount of gold until 1933, when President Franklin D. Roosevelt suspended the ability to convert gold in order to cope with the Great Depression.
In 1971, President Richard Nixon ended the ability to convert dollars into gold, in order to protect America's gold reserves and stabilize the economy, marking the beginning of the fiat currency system that we use today.
The fixed supply of Bitcoin, encoded in the token economic structure mechanism, makes Bitcoin the number one rival of gold in the digital world.
Joe Burnett, the market research director at Unchained, predicts that Bitcoin could compete with or even surpass the market capitalization of gold in the next decade, with a price forecast of Bitcoin exceeding 1.8 million dollars by 2035.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their due diligence before making any decisions. We are not responsible for your investment decisions.
Minh Anh