Tariffs and trade tensions could ultimately be positive for bitcoin (BTC) adoption in the medium term, asset manager Grayscale said in a research report Wednesday.
Higher tariffs result in stagflation— stagnant economic growth coupled with inflation — which is negative for traditional assets, but positive for scarce commodities such as gold, the report said.
Bitcoin is considered hard money, akin to digital gold, and is viewed as a modern store of value, the report noted.
Cryptocurrencies surged on Wednesday following President Donald Trump’s announcement of a 90-day pause on tariffs for countries that haven’t retaliated against the U.S.
“Trade tensions may put pressure on reserve demand for the U.S. Dollar, opening space for competing assets, including other fiat currencies, gold, and bitcoin,” Grayscale said.
Historical precedent suggests that dollar weakness and above-average inflation may persist, and bitcoin is likely to benefit from such a macro backdrop, the asset manager said.
“A rapidly improving market structure, supported by U.S. government policy changes” could help broaden bitcoin’s investor base, the report added.
Read more: Trump Administration Wants Weaker Dollar and That’s Positive for Bitcoin: Bitwise
Read MoreCoinDesk: Bitcoin, Ethereum, Crypto News and Price Data[#item_full_content]
A stronger yen typically coincides with de-risking across macro portfolios, and that dynamic could tighten…
Bitcoin (BTC) is retesting a crucial support area after its price slid 5% from the…
Despite the Bitcoin price recovery above the crucial $90,000 threshold—a level that has historically served…
Fundstrat’s Tom Lee told attendees at Binance Blockchain Week that he believes the worst leg…
The Binance Blockchain Week event in Dubai became the center of a high-stakes showdown between…
Crypto analyst Miles Deutscher has issued one of the most forceful bottom calls of this…