Grayscale Highlights that Rising Trade Tensions and Tariffs Could Benefit Bitcoin Adoption in the Near Future.

Grayscale Report: Bitcoin Could See Growth as Trade Tensions and Tariffs Spark Inflation

Grayscale’s latest research suggests that tariffs and trade tensions, which contribute to stagflation, could lead to increased adoption of bitcoin (BTC) over the medium term, as investors seek alternatives to traditional assets.

The report outlines how higher tariffs contribute to economic stagnation paired with rising inflation—known as stagflation—resulting in negative consequences for conventional assets. However, scarce commodities like gold and bitcoin tend to thrive under these conditions due to their perceived value as hedges against inflation. Bitcoin, often compared to “digital gold,” is increasingly seen as a modern store of value in uncertain economic times.

Following President Donald Trump’s announcement of a 90-day tariff pause for non-retaliating countries, bitcoin and other cryptocurrencies surged in response, with bitcoin seeing significant price increases.

Grayscale also notes that ongoing trade tensions could exert downward pressure on demand for the U.S. dollar, allowing alternative assets such as bitcoin, gold, and other fiat currencies to rise in prominence.

The report highlights that a macroeconomic environment marked by dollar weakness and inflation could continue to benefit bitcoin. Moreover, U.S. government policy changes that enhance market structure could expand bitcoin’s appeal to a broader group of investors, positioning it as a key asset in uncertain times.

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