The recent reciprocal tariffs imposed by US President Donald Trump on 180 countries have sparked global trade tensions, leading to renewed interest in Bitcoin as a strategic financial asset. VanEck’s head of digital assets, Matthew Sigel, highlighted Bitcoin’s resilience amid economic uncertainty, attributing its stability to its growing appeal as a neutral asset. Sigel emphasized that if tariffs drag on GDP without causing inflation, the Fed may cut rates, reintroducing liquidity conditions favorable for Bitcoin.
Recent developments indicate that nations are increasingly turning to Bitcoin for cross-border settlements. China and Russia have reportedly settled select energy transactions in digital assets, while Bolivia announced plans to use digital assets for energy imports due to constraints on foreign reserves. In Europe, French utility EDF is exploring Bitcoin mining to monetize surplus electricity exported to Germany. Sigel noted that these real-world use cases highlight an ongoing monetary realignment.
Sigel advised investors to monitor Federal Reserve policy and the US Dollar Index, as dovish shifts in rate expectations and dollar weakness historically benefit Bitcoin. Despite recent market volatility, US-listed spot Bitcoin ETFs have seen net inflows of approximately $600 million this year, reflecting growing institutional interest. Sigel highlighted the importance of ETF products and on-chain activity in tracking institutional demand for Bitcoin.
In conclusion, the recent tariffs imposed by President Trump have reignited global trade tensions, leading to increased interest in Bitcoin as a strategic financial asset. Bitcoin’s resilience amid economic uncertainty and growing appeal as a neutral asset have positioned it as a potential hedge against market volatility. Nations are increasingly turning to digital assets for cross-border settlements, signaling a shift in global trade dynamics. Investors are advised to monitor Federal Reserve policy and the US Dollar Index, as these factors can impact Bitcoin’s performance. Despite market volatility, US-listed spot Bitcoin ETFs have seen net inflows, reflecting growing institutional interest in the cryptocurrency.
