tl;dr
China and Russia have reportedly started using Bitcoin and other digital assets to settle energy transactions, as part of efforts to de-dollarize amid the trade war. This shift is seen as a sign of Bitcoin's evolution into a functional monetary tool, particularly for economies seeking to reduce reli...
China and Russia have reportedly started using Bitcoin and other digital assets to settle energy transactions, as part of efforts to de-dollarize amid the trade war. This shift is seen as a sign of Bitcoin's evolution into a functional monetary tool, particularly for economies seeking to reduce reliance on the US dollar.
Analysts suggest that a weakening US dollar could benefit Bitcoin, with historical correlations indicating strength for the cryptocurrency during periods of dollar weakness. The trade and foreign policies of the Trump administration have prompted Europe to move towards reduced reliance on the dollar, signaling a broader trend of de-dollarization.
VanEck Head of Digital Assets Research Matthew Sigel stated, “These are early signs that Bitcoin is evolving from a speculative asset into a functional monetary tool,” adding, “particularly in economies looking to bypass the dollar and reduce exposure to US-led financial systems.”
Sigel advised investors to keep an eye on the evolving path of Federal Reserve policy, mentioning that dovish shifts in rate expectations and rising liquidity historically correlate with Bitcoin strength. He also highlighted that any sustained dollar weakness “may bolster the Bitcoin-as-hedge narrative, particularly in an environment of geopolitical fragmentation.”
Bitwise chief investment officer Matt Hougan echoed the sentiment, noting that dollar weakness historically correlates with Bitcoin strength and suggested a potential shift from a single reserve currency such as the dollar to a “more fractured reserve system, with hard money like Bitcoin and gold playing a bigger role than it does today.”
In late March, before the trade tariffs came into effect, analysts stated that “Trump’s trade and foreign policies have forced Europe on a path toward reduced reliance on the US, and this is likely to imply a desire for reduced reliance on the dollar.”