Grayscale’s Research: Tariffs and Trade Tensions Could Propel Bitcoin Adoption in the Medium Term
According to a new report from Grayscale, trade tensions and tariffs may ultimately have a positive effect on the adoption of bitcoin (BTC) in the medium term.
The research explains that higher tariffs contribute to stagflation—an economic condition characterized by stagnant growth and rising inflation—which tends to negatively impact traditional assets but benefits scarce assets like gold and bitcoin.
Bitcoin, often referred to as digital gold, is increasingly viewed as a modern store of value and hard money, the report highlights.
The crypto market saw significant gains on Wednesday after President Donald Trump announced a 90-day pause in tariffs for countries that have not retaliated against the U.S.
Grayscale noted that trade tensions could weaken demand for the U.S. dollar, creating an opportunity for alternative assets like gold and bitcoin to gain traction.
The asset manager pointed to historical trends, which suggest that dollar weakness and persistent inflation may continue, providing a favorable environment for bitcoin’s growth.
“An improving market structure, bolstered by U.S. government policy shifts, could further expand bitcoin’s investor base,” the report concluded.
