Tariffs, Trade Tensions May Boost Bitcoin Adoption in the Medium Term: Grayscale
The report argues that tariffs contribute to stagflation, which benefits scarce assets such as gold and bitcoin.
Author: Will Canny | Edited by: Sheldon Reback Updated: April 10, 2025, 1:24 pm Published: April 10, 2025, 12:14 pm
Key points:
- Grayscale believes trade tensions could have a positive impact on Bitcoin adoption.
- Tariffs could lead to stagflation, which is good for scarce assets like gold and bitcoin.
- The US dollar's status as the world's sole reserve currency could be under threat, creating opportunities for new reserve assets, according to an asset manager.
Tariffs and trade tensions could ultimately have a positive impact on Bitcoin (BTC) adoption in the medium term, according to a Grayscale research report released Wednesday.
The report found that rising tariffs lead to stagflation – a slowdown in economic growth due to inflation – which hurts traditional assets but has a positive effect on scarce commodities such as gold.
The report emphasizes that Bitcoin is viewed as hard money, comparable to digital gold, and acts as a modern store of value.
Cryptocurrencies surged on Wednesday after President Donald Trump announced a 90-day suspension of tariffs for countries that do not retaliate against the United States.
“Trade tensions could reduce reserve demand for the US dollar, creating opportunities for competing assets including other fiat currencies, gold and Bitcoin,” Grayscale said.
Historical data suggests that dollar weakness and elevated inflation may persist, and Bitcoin is likely to benefit from such a macroeconomic backdrop, the asset manager noted.
The report also said that “a rapidly improving market structure, supported by changes in U.S. government policy,” could help expand the number of Bitcoin investors.
Read More: Trump Administration Seeks to Weaken Dollar, and That's Good for Bitcoin: Bitwise
