Trump's New Security Strategy Challenges Crypto Fears

New Strategy and Global Economy

The White House's newly announced National Security Strategy discusses the increasing global financial expansion and military spending. This could have profound effects on the markets.

NATO Countries Should Increase Defense Spending

The strategy document calls on NATO allies to raise defense spending to 5% of GDP. This stands out as a much higher target than the previous mandatory 2%.

Effects of Increasing Debt

It is emphasized that increasing government borrowing could lead to higher bond yields and inflation. This situation could complicate the process for interest rate cuts. Cryptocurrencies may remain bound to low-interest rates, while these possibilities could change with new strategies.