Economic Retaliation from China and EU Could Boost Bitcoin’s Role in Global Trade
Matthew Sigel, head of digital assets research at global investment firm VanEck, has weighed in on the potential implications of President Donald Trump’s recent round of tariffs.
In a thread on the social media platform X, Sigel suggests that retaliatory economic actions from China and the European Union (EU) against these tariffs could ultimately support the growth and adoption of Bitcoin (BTC).
Energy Trade Settlement Using Bitcoin
Sigel highlights how digital assets are already being used for energy trade, a trend that may accelerate as a result of Trump’s tariffs. He points to the recent revelation that China and Russia are using Bitcoin and other digital assets to settle energy transactions, with Bolivia also announcing plans to import energy using cryptocurrency. In Europe, French utility giant EDF is reportedly exploring using surplus electricity to mine Bitcoin instead of exporting it to Germany.
Sigel argues that these developments indicate how digital assets are evolving from speculative tools to integral parts of global trade and economic systems. He explains, “These developments highlight how digital assets are evolving from speculative instruments into tools for energy trade and monetary realignment.” He suggests that the tariffs could serve as a catalyst for Bitcoin’s role in the shifting multi-polar economic order.
Tariffs as a Catalyst for Bitcoin’s Growth
Sigel predicts that the economic ramifications of Trump’s tariffs could increase demand for Bitcoin as countries seek alternatives to traditional financial systems, especially if China and the EU decide to bypass the U.S. dollar in response to tariff retaliation. He emphasizes the need for traders to watch the policies of the U.S. Federal Reserve, China, and the EU closely to gauge the potential impact on the crypto markets.
Sigel also notes that Bitcoin’s performance tends to benefit from shifts in U.S. Federal Reserve policy, particularly when the Fed moves toward a more dovish stance and liquidity increases. He advises that the U.S. Dollar Index (DXY) is another key indicator for Bitcoin investors – any sign of dollar weakness could further support Bitcoin’s role as a hedge against inflation.
Bitcoin ETFs and Retaliatory Actions
Bitcoin exchange-traded funds (ETFs) are also a key factor in the crypto market’s growth, according to Sigel. Despite volatility, U.S.-listed spot Bitcoin ETFs have seen net positive inflows of about $600 million year-to-date, with renewed interest in late March. He believes that any retaliatory steps taken by China or the EU, especially those aimed at bypassing dollar-based systems, could accelerate Bitcoin’s strategic case as a global reserve asset.
Conclusion
Sigel’s analysis suggests that while Trump’s tariffs have caused volatility in both digital assets and stock markets, they may ultimately serve as an accelerant for Bitcoin adoption, especially in the context of global trade. With growing use cases for cryptocurrencies in energy transactions and international trade, the U.S. tariffs could play a pivotal role in shifting the balance toward digital assets like Bitcoin.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a "detective-like" mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
