#BitcoinWithTariffs

Bitcoin's relationship with tariffs is complex. Recent developments suggest that Bitcoin could benefit from tariffs in the long run. Here's why ¹ ²:

- *Tariffs and Dollar Value*: If the US Dollar continues to lose ground due to tariffs, Bitcoin might become a preferred reserve asset. Binance CEO Richard Teng notes that this environment could accelerate interest in crypto as a non-sovereign store of value.

- *Bitcoin as a Safe-Haven Asset*: VanEck's Head of Digital Assets Research, Mathew Sigel, believes that weakness in the Dollar could result in Bitcoin replacing it as a safe-haven asset. This is because Bitcoin has historically excelled in liquidity conditions that might be reintroduced if the Fed cuts rates.

- *Potential for Growth*: Bitwise's Chief Investment Officer, Matt Hougan, suggests that a weaker Dollar could initiate a disruption in global markets, leading to the emergence of newer reserve assets like Bitcoin and gold.

- *US Reserves*: The Trump administration is exploring using tariff revenue and gold revaluation to buy Bitcoin for US reserves. This could further solidify Bitcoin's position as a valuable asset.

*Key Players' Perspectives:*

- *Binance CEO Richard Teng*: Believes Bitcoin holds strong recovery potential despite short-term macro uncertainty.

- *Matt Hougan (Bitwise)*: Expects dollar weakness to be good for Bitcoin in the short term.

- *Mathew Sigel (VanEck)*: Sees potential for Bitcoin to rally if the Fed cuts rates.

*Market Impact:*

- Bitcoin dipped below $76,000 after Trump's additional 50% tariff on China went into effect.

- Stock market volatility briefly surpassed Bitcoin amid tariff drama, but some analysts believe Bitcoin's volatility will decline due to institutional involvement.