Trade Policies Could Boost Bitcoin Adoption – Here’s Why
Bitwise analyst Jeff Park believes that US trade policies under Trump could spark global economic instability, ultimately boosting Bitcoin adoption as a store of value.
He argues that the economic disruptions caused by trade conflicts will likely push governments toward inflationary measures, devaluing currencies and driving more investors toward BTC.
Park predicts that rising inflation from trade tariffs, especially those imposed by the US, will hit both domestic and foreign economies, with trading partners facing a heavier burden. This economic strain may prompt a search for safer assets, positioning Bitcoin as an attractive option despite the short-term financial pain.
Economist Ray Dalio adds that tariffs tend to be deflationary for producers and inflationary for consumers, creating stagflation on a global scale. He warns that mounting debt and trade imbalances could eventually reshape the world’s financial system.
The impact of trade policies is already being felt, with US stock markets reacting negatively to sweeping tariffs. Market analyst Nic Puckrin cautions that if trade tensions persist, there’s a 40% chance of a US recession by 2025. In this uncertain landscape, Bitcoin’s potential as a hedge against currency devaluation becomes more relevant, especially as traditional markets struggle.
Despite the challenges, some see a silver lining for Bitcoin. As more investors lose faith in fiat currencies due to economic instability, BTC’s appeal as a decentralized store of value may strengthen. Analysts speculate that if Bitcoin proves resilient during periods of financial turmoil, it could cement its position as a reliable hedge in the evolving economic environment.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
