The recent shifts in US trade policy have significantly impacted both the national economy and global commerce. The Trump administration’s reliance on tariffs aims to achieve a rare balance reducing inflation while allowing for lower interest rates. Although initial fears centered on inflationary pressures, recent data indicate that the tariffs’ actual impact has been milder than expected.
Statements from IMF Managing Director Kristalina Georgieva also played a role in driving Bitcoin’s price up to $122,626. She noted that the peak of trade-weighted tariffs had already passed, followed by a gradual decline challenging the assumption that higher tariffs inevitably fuel inflation.
Georgieva emphasized that, despite multiple global shocks, the world economy has performed better than projected. The IMF now forecasts global growth to slow from a pre-pandemic rate of 3.7% to around 3% in the medium term. She called on China to introduce a structured fiscal package to boost private consumption and urged the United States to adopt sustainable measures to address its federal deficit and encourage household savings.
According to IMF projections, global public debt is expected to exceed 100% of GDP by 2029, driven by both developed and emerging economies. Meanwhile, the US trade-weighted tariff rate has fallen from 23% in April to 17.5%. However, steep corrections in stock market valuations could threaten global growth and severely affect developing nations. Georgieva cautioned that the global economy’s resilience remains largely untested, and the full impact of elevated US tariffs is yet to unfold.
In parallel, the surge in global public debt has lent temporary support to Bitcoin’s price, though it soon corrected to $122,500. In an environment marked by falling interest rates and mounting debt, scarce assets such as gold and increasingly Bitcoin continue to attract investors seeking protection, signaling that expectations of a prolonged crypto downturn may be premature.