Grayscale's latest report suggests that despite the potential near-term price decline for Bitcoin due to increasing tariffs under President Trump, the changing global trade dynamics could ultimately benefit Bitcoin's adoption. The report highlights how tariffs may contribute to stagflation, a period characterized by high inflation and stagnant economic growth, which historically favors scarce commodities, including Bitcoin. In previous stagflationary periods, traditional assets like equities and bonds have underperformed relative to inflation, while gold has thrived. Moreover, trade tensions may pressure the U.S. dollar, prompting countries to diversify their currency reserves, including into Bitcoin. Although currently, only Iran officially holds Bitcoin on its balance sheet, the evolving economic conditions could lead to wider acceptance of Bitcoin as a reserve asset. The report concludes that uncertainty in U.S. government policy could lead to sustained dollar weakness, potentially enhancing Bitcoin's adoption and price. Bitcoin is currently trading at $79,150, reflecting a 1.8% rise over the past 24 hours, although it has decreased nearly 4% over the past week.

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