EddieJayonCrypto
10 Apr 25
A Grayscale report suggests that increasing tariffs under President Donald Trump may cause a near-term price decline for Bitcoin, but changing global trade dynamics could benefit the cryptocurrency. The report notes that tariffs contributing to stagflation may lead to underperformance of traditional...
A Grayscale report suggests that increasing tariffs under President Donald Trump may cause a near-term price decline for Bitcoin, but changing global trade dynamics could benefit the cryptocurrency. The report notes that tariffs contributing to stagflation may lead to underperformance of traditional assets, while historical data indicates that stagflation can be favorable for scarce commodities like gold. Additionally, trade tensions may put pressure on demand for the U.S. dollar, potentially supporting Bitcoin adoption. The report also suggests that disruptions to the dollar-centric international trade and financial system could result in more reserve diversification by central banks, potentially including Bitcoin. While uncertainties remain, the report speculates that sustained dollar weakness and above-target inflation could promote an environment boosting Bitcoin adoption and price. For now, only Iran’s Central Bank maintains a line item for Bitcoin on its balance sheet according to the report, but sovereign wealth funds hold Bitcoin investments and the United States is creating its own Strategic Bitcoin Reserve—potentially legitimizing its place as a diversified reserve asset. Those conditions could promote an environment that boosts both the adoption and price of the leading cryptocurrency. Bitcoin has given back a lot of Wednesday’s gains and is now trading at $79,150—a 1.8% increase in the last 24 hours, though it’s down nearly 4% over the last week.