President Trump’s new national security strategy emphasizes global financial expansion and increased military spending. Under this plan, the United States aims to strengthen its military power and prioritize funding to address global economic challenges. This decision is expected to significantly impact global financial markets, particularly causing fluctuations in the prices of Bitcoin, gold, and bond yields. Historically, during times of heightened global economic uncertainty, investors tend to shift towards traditional safe-haven assets like gold and government bonds, driving their prices up. Conversely, cryptocurrencies like Bitcoin sometimes emerge as alternative investment options, though they experience greater volatility.
The strategy may lead to an increase in U.S. government debt due to the need for additional funding for financial expansion. Consequently, bond yields are likely to rise, reflecting growing investor demand and inflation concerns. Furthermore, the global rise in military expenditures could influence other countries’ financial policies, potentially causing instability in the world economy. This strategy will affect the global political and economic balance, creating new opportunities and risks for investors. Given this uncertainty, investors are advised to carefully reconsider their investment strategies to mitigate potential losses.
Source: coindesk
