Global Trade Tensions Reignite Interest in Bitcoin as a Strategic Financial Asset

US President Donald Trump’s New Reciprocal Tariffs

US President Donald Trump’s new reciprocal tariffs on 180 countries have reignited global trade tensions, leading to fresh interest in Bitcoin (BTC) as a strategic financial asset, according to VanEck’s head of digital assets, Matthew Sigel.

Bitcoin’s Resilience Amid Trade Tensions

Following the April 2 announcement, Bitcoin dipped to the $81,000 range amid broader risk-off sentiment. However, the flagship crypto stabilized and outperformed equities in the days that followed.

Sigel attributed the resilience to Bitcoin’s growing appeal as a neutral asset in times of economic uncertainty.

Nations Adopting Bitcoin

Sigel pointed to recent developments that demonstrate how Bitcoin’s role in global trade continues to evolve, with several nations turning to digital assets for cross-border settlement.

Intelligence reports revealed that China and Russia have begun settling select energy transactions in Bitcoin and other digital assets, marking a significant departure from traditional dollar-based systems.

Bolivia, facing constraints on foreign reserves and payment networks, announced in March a plan to import energy using digital assets as payment rails.

In Europe, French state-backed utility EDF is exploring Bitcoin mining as a use case for excess electricity it currently exports to Germany at a loss. EDF reportedly views domestic mining as a way to monetize surplus supply in a volatile energy pricing environment.

Fed, Dollar Index, and ETF Flows

Sigel advised investors to track Federal Reserve policy closely, as dovish shifts in rate expectations and rising liquidity historically boost Bitcoin.

He also pointed to the US Dollar Index (DXY) as a critical indicator, suggesting that any dollar weakness could reinforce Bitcoin’s status as a hedge.

Despite recent market volatility, US-listed spot Bitcoin ETFs remain net positive by approximately $600 million this year, supported by inflows in late March.

Sigel noted that continued demand for ETF products and on-chain activity reflects growing institutional interest.

Conclusion

The recent trade tensions and tariffs have led to a renewed interest in Bitcoin as a strategic financial asset. As nations begin to adopt digital assets for cross-border settlement, the role of Bitcoin in global trade is likely to continue evolving.

Investors are advised to track Federal Reserve policy and the US Dollar Index, as these indicators can impact the demand for Bitcoin. The continued demand for ETF products and on-chain activity suggests growing institutional interest in the cryptocurrency.

FAQs

• What is the impact of the US tariffs on global trade? The tariffs have reignited global trade tensions, leading to a renewed interest in Bitcoin as a strategic financial asset.
• How is Bitcoin being used in cross-border settlement? Several nations, including China, Russia, Bolivia, and France, are using Bitcoin and other digital assets for cross-border settlement, marking a significant departure from traditional dollar-based systems.
• What is the significance of the Federal Reserve policy? Dovish shifts in rate expectations and rising liquidity historically boost Bitcoin, making it a critical indicator for investors.
• What is the impact of the US Dollar Index on Bitcoin? Any dollar weakness could reinforce Bitcoin’s status as a hedge, making it a critical indicator for investors.
• What is the current demand for Bitcoin ETFs? Despite recent market volatility, US-listed spot Bitcoin ETFs remain net positive by approximately $600 million this year, supported by inflows in late March.