Tariffs and Trade Tensions Could Boost Bitcoin Adoption, Says Grayscale

Grayscale's research report indicates that tariffs and trade tensions may positively influence Bitcoin adoption in the medium term. Key points include:

• Higher tariffs lead to stagflation, negatively impacting traditional assets but benefiting scarce commodities like gold.
• Bitcoin is viewed as a form of hard money and a modern store of value.
• Cryptocurrencies saw a surge following President Trump's announcement of a 90-day tariff pause for non-retaliating countries.
• Trade tensions might reduce demand for the U.S. Dollar, allowing room for alternatives such as Bitcoin.
• Historical trends suggest dollar weakness and high inflation could persist, potentially favoring Bitcoin.
• Improving market structures and U.S. policy changes may broaden Bitcoin's investor base.