Bitcoin adoption boosted by tariffs and trade tensions

Grayscale Investments has highlighted how escalating tariffs and trade tensions could positively impact Bitcoin (CRYPTO:BTC) adoption in the medium term.

In its latest research report, the asset manager noted that higher tariffs often lead to stagflation—stagnant economic growth coupled with inflation—which is detrimental to traditional assets but favorable for scarce commodities like gold and Bitcoin.

Bitcoin is increasingly viewed as “hard money” akin to digital gold and serves as a modern store of value, according to Grayscale’s analysis.

The report also emphasised that trade disruptions may weaken demand for the U.S. dollar as the global reserve currency, creating opportunities for alternative assets such as Bitcoin.

“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 stated.

Historical trends suggest that periods of dollar weakness combined with high inflation often benefit Bitcoin, which thrives in uncertain macroeconomic environments.

The report further pointed out that recent U.S. government policy changes, including a 90-day pause on tariffs announced by President Trump last week, could support Bitcoin’s market structure and broaden its investor base.

Grayscale added that Bitcoin’s decentralised nature positions it as a key asset during times of geopolitical instability.

The firm expects that continued inflation and unsustainable budget deficits will drive demand for store-of-value assets like Bitcoin.

With the cryptocurrency market evolving rapidly, Grayscale sees Bitcoin adoption accelerating as investors seek alternatives to traditional financial systems amid rising economic pressures.

At the time of reporting, the Bitcoin price was $80,414.56.