Trump’s National Security Strategy: Gold Gains, Bitcoin Faces Headwinds
The White House’s new National Security Strategy signals a push for global fiscal expansion, a development that could unsettle crypto markets accustomed to rapid interest rate cuts.
Signed by President Donald Trump, the strategy promotes an “America First” agenda, urging NATO allies to raise defense spending to 5% of GDP. Japan and South Korea are also expected to increase military budgets. The plan strengthens the U.S. military presence in the Western Pacific and encourages Taiwan and Australia to boost spending.
Funding these initiatives may require more government borrowing, which could raise bond yields, inflation, and the cost of capital, limiting central banks’ ability to cut rates. The strategy also signals an end to the “era of mass migration,” which may keep wages sticky.
For investors, these trends favor safe-haven assets like gold, up 60% this year, while Bitcoin, often called “digital gold,” has struggled, down nearly 5% year-to-date.
The Federal Reserve is expected to cut rates 25 basis points to 3.5%, but deeper reductions appear unlikely.
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