Grayscale Report: Tariffs and Trade Tensions May Boost Bitcoin as an Inflation Hedge
In its latest research, Grayscale suggests that rising tariffs and ongoing trade tensions could prove beneficial for the adoption of bitcoin (BTC) in the medium term, as they contribute to economic stagflation—a combination of stagnant growth and rising inflation.
While tariffs create challenges for traditional assets, they also boost demand for scarce commodities like gold and bitcoin, which are often seen as safe havens during inflationary periods. Bitcoin, described in the report as “digital gold,” is increasingly being recognized as a reliable store of value in uncertain economic climates.
The research comes amid a surge in cryptocurrency prices, including bitcoin, after President Donald Trump’s announcement of a 90-day pause on tariffs for countries that have not retaliated against the U.S.
According to Grayscale, trade tensions could lead to increased pressure on the U.S. dollar, opening the door for alternative assets such as bitcoin and gold to gain traction.
The report points to historical trends that show how dollar weakness, coupled with higher inflation, often results in increased demand for assets like bitcoin. Additionally, it suggests that ongoing improvements in market structure, particularly through favorable policy changes from the U.S. government, could further support bitcoin’s rise in popularity among investors.
