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

Odaily reports that an analyst at a brokerage firm stated in a report to clients: "If tariffs mean a stronger dollar, rising inflation, and a weaker prospect of rate cuts in the near term, then this implies a decline in global liquidity for risk assets. In the longer term, as governments take on higher debt and deficits, leading to further currency devaluation, has relative value against the dollar, which is evident in 's long-term compounding history. However, in the short term, is correlated with risk assets. Therefore, the sell-off in cryptocurrencies is not surprising." The Bernstein analyst believes that in the long run, the Trump administration sees cryptocurrencies as strategically important for government governance and national finances, aiming to control inflation through deficit reduction, cost cuts in the government efficiency department led by Elon Musk, and increased energy production. While foreign governments may retaliate against tariffs by dumping U.S. Treasuries, the analyst expects sovereign states to accumulate gold and as economic buffers, with the U.S. leading the shift to support cryptocurrencies, and more countries may follow suit.