Analyst: Sovereign nations are expected to hoard gold and Bitcoin as economic buffers

Odaily Planet Daily News: Brokerage analysts said in a report to clients: "If tariffs mean a stronger dollar, higher inflation, and a weakening of the prospect of rate cuts in the short term, then this means a decline in global liquidity for risky assets. In the longer term, as governments take on higher debts and higher deficits, leading to further currency depreciation, Bitcoin has relative value relative to the dollar, which is evident in Bitcoin's long-term compound history. But in the short term, Bitcoin is correlated with risky assets. Therefore, the sell-off in cryptocurrencies is not surprising." Bernstein analysts believe that in the long run, the Trump administration believes that cryptocurrencies are strategically important to government governance and national finances, aiming to control inflation by cutting deficits, cost-cutting departments of the Government Efficiency Department led by Elon Musk, and increasing energy production. While foreign governments may retaliate against tariffs by selling U.S. Treasuries, analysts expect sovereign states to hoard gold and Bitcoin as economic buffers, the United States will lead the shift to support cryptocurrencies, and more countries may follow suit.