Hedge fund manager Claims Trump’s trade war may make Bitcoin a safe hedge for investors
Hedge fund manager Brian Kelly suggested this week that Bitcoin may be a safe hedge in the event of a Trump trade war.
US president Donald Trump raged on Twitter in the early hours of the morning this week concerned over the market’s reactions to his recent tariffs on aluminum and steel. He wrote:
“We must protect our country and our workers. Our steel industry is in bad shape. IF YOU DON’T HAVE STEEL, YOU DON’T HAVE A COUNTRY”!
A trade war may be imminent with the recent introduction of a 25% tariff for steel and a 10% tariff for aluminum. The new tariffs will go into effect next week and both the Dow Jones and S&P 500 dropped after the news.
Hedge fund manager Brian Kelly, however, says this is an opportunity to use Bitcoin to hedge any losses that may be inevitable from a trade war. Kelly made this proposal on CNBC’s Fast Monday after news about the possible trade war erupted.
He also suggested that investors traditionally hedge with gold but Bitcoin seems to have higher gains at this point in time. He stated:
“In this environment, I want to own those things that are deflationary and fixed supply in an inflationary environment. And look at what Bitcoin has done the last couple of days”.
The Dow Jones has plunged over 1,000 points in the past week and yet Bitcoin has remained steady. The Dow Jones seems to have dropped sharply after Trump announced the tariff.
The tariffs come only a month after the US Department of Commerce (DOC) issued a report recommending that a tariff would maintain national security. DOC secretary Wilbur Ross recommended that all countries pay a tariff of 24% and 7.7% on steel and aluminum imports.