Trump's National Security Strategy Gives Reality Check to Crypto's Low-Rate Obsession

The newly unveiled National Security Strategy, signed by President Donald Trump, advocates for an "America First" agenda backed by significant global fiscal expansion and military spending increases, such as demanding NATO allies raise defense spending to 5% of GDP. This push for massive expenditure worldwide implies increased government borrowing, which would drive up bond yields, raise the cost of capital, and fuel inflation, thereby making it difficult for central banks to implement the steep interest rate cuts the crypto market has been anticipating. Furthermore, the strategy's declaration that the "era of mass migration is over" suggests labor import restrictions could keep wages sticky and add to inflationary pressures. This environment favors inflation hedges like gold, which has surged, while Bitcoin, pitched as "digital gold," has underperformed, suggesting the strategy presents a reality check to crypto's low-rate obsession.

(Source：CoinDesk)