Trump would send inflation higher. That’s not good for crypto, says analyst

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Former President Donald Trump is pro-crypto.

He’s met with prominent Bitcoin miners and will speak at an industry conference, while crypto boosterism is even part of the Republican party’s election platform.

Many in the industry swoon over Trump and think he’ll “pump their bags.”

But could Trump’s economic policies end up hurting, not helping, the crypto markets?

If we assume that the former president’s economic platform leads to higher inflation, then yes, said Noelle Acheson, a crypto and macroeconomic analyst, in a recent newsletter.

High inflation, low risk

Trump wants to “end inflation,” per the Republican party’s election platform.

However, GOP proposals to cut taxes, implement widespread tariffs, and push for a weaker dollar, usually lead to inflation, says Acheson.

She isn’t alone in her analysis. It’s what 16 economists who have won the Nobel Prize have also argued, according to Axios.

JPMorgan has offered a similar analysis.

Lower “inflation means lower interest rates, which should be good for risk assets, including crypto,” Acheson wrote. “Higher inflation, perhaps not so much, at least in the short-term.”

To be fair, she then explored how Trump’s push for a weaker dollar could also lead to currency turmoil, which could then make assets like crypto more attractive.

“This should be good for BTC,” she wrote, “in that currency turmoil will enhance the appeal of a hard supply cap asset that can diversify reserves while remaining unaffected by geopolitics,”