Grayscale Report Suggests Trade Tensions Could Boost Bitcoin Adoption

According to PANews, Grayscale Investments, an asset management firm, released a research report on Wednesday indicating that tariffs and trade tensions may positively impact Bitcoin (BTC) adoption in the medium term. The report highlights that increased tariffs can lead to economic stagflation, characterized by stagnant economic growth and inflation, which negatively affects traditional assets but benefits scarce commodities like gold. Trade tensions might exert pressure on the demand for dollar reserves, creating opportunities for competitive assets such as other fiat currencies, gold, and Bitcoin. Historical precedents suggest that a weak dollar and above-average inflation could persist, potentially benefiting Bitcoin in such a macroeconomic environment. The report also notes that "rapid improvements in market structure, supported by changes in U.S. government policy," could help expand the investor base for Bitcoin.